Investing in High Food Prices

Sun, 12/19/2010 - 03:38 EDT - Seeking Alpha

Joseph L. Shaefer submits: A pox on the Consumer Price Index (CPI). “The core CPI rose in line with economists’ projections at just 0.1% this month, excluding volatile food and energy prices,” is a typical headline these days. Only an economist making $3 million a year on Wall Street, who never shops for food and always has his driver keep the tank filled up, or a government bureaucrat who gets regular raises and "bonuses" courtesy of unwitting taxpayers, could imagine excluding food and energy from the family budget. The latest numbers released show that, on an annualized basis, food prices rose more than 6% and energy costs were up closer to 10% . Let’s say our typical reader is married with an income of $100,000 – flat to maybe up 3% in salary this month. And food is up 6%. Fuel 10%. Cotton for clothing roaring ahead. Rental costs rising. And don’t even hope to see the same college tuition next year as this year.Complete Story »

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U.S. inflation jumps most in 4 years as gas prices spike
WASHINGTON — U.S. consumer prices recorded their largest increase in nearly four years in February as the cost of gasoline surged, but details of the report on Friday showed no sign of a pickup in inflation to trouble the Federal Reserve. The Labor Department said its Consumer Price Index increased 0.7% last month, the largest gain since June 2009, after being flat in January. Gasoline accounted for about three quarters of the spike in consumer inflation. Economists polled by Reuters had expected the CPI to advance 0.5%.
Median CPI Inflation Below 1% for the 12th Month
According to a report released today by the Federal Res
Housing Starts, Permits, CPI All Miss
Following last week's jump in headline PPI some expected a reversal in the recent trend of BLS-measured disinflation. No such luck: moments ago the BLS reported that according to its hedonic adjustments, May headline consumer price inflation rose by 0.1%, below expectations of a 0.2% increase, and up 1.4% from the prior year. Alternatively, core CPI, excluding food and energy rose by 0.2% in line with expectations, and up 1.7% from past year.
US Wholesale Prices Fall 0.7 Pct., Most in 3 Years
WASHINGTON — Sharp drops in fuel and food costs reduced a measure of U.S. wholesale prices in April by the most in three years. Outside those volatile categories, inflation stayed low. The producer price index, which measures price changes before they reach the consumer, fell a seasonally adjusted 0.7 percent in April from March, the Labor Department said Wednesday. It was the second straight monthly decline and the steepest since February 2010. The index declined largely because gas prices dropped 6 percent and the price of home heating oil fell by the most in almost four years.
US Wholesale Prices Fall 0.7 Pct., Most in 3 Years
WASHINGTON — Sharp drops in fuel and food costs reduced a measure of U.S. wholesale prices in April by the most in three years. Outside those volatile categories, inflation stayed low. The producer price index, which measures price changes before they reach the consumer, fell a seasonally adjusted 0.7 percent in April from March, the Labor Department said Wednesday. It was the second straight monthly decline and the steepest since February 2010. The index declined largely because gas prices dropped 6 percent and the price of home heating oil fell by the most in almost four years.
CPI: Inflation Rises; Core Remains Below Fed's 2% Target
Doug Short submits: The Bureau of Labor Statistics released the CPI data for March this morning. Year-over Headline CPI came in at 2.68%, which the BLS rounds to 2.7%, up from 2.11% last month. Year-over year-Core CPI came in at 1.19%, which the BLS rounds to 1.2%, up from 1.09% last month. Here is the BLS summary:
CPI Inflation Report and a 25-Year Perspective
The BLS released its Consumer Price Index report for March, with the follow
US rise in consumer prices slows unexpectedly
US consumer prices rose a mere 0.1 percent in November in an unexpected easing of inflation amid a weak economic recovery, official data showed Wednesday.Economists had expected the Labor Department's consumer price index to gain 0.2 percent as it had in October.Excluding food and energy prices, which can be volatile month-to-month, so-called "core" CPI increased 0.1 percent, matching expectations, after three months of flat readings.
February Consumer Prices Accelerate on Higher Energy Costs
James Picerno submits: U.S. consumer price inflation ticked higher last month, the Bureau of Labor Statistics reports. Headline inflation rose by a seasonally adjusted 0.5% in February, up from 0.4% the month before. Core inflation, however, remained modest, advancing 0.2% last month, unchanged from January’s rate.

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