Consumer prices rise, stoking inflation fears

[Randi_Listener]

CPI sees biggest gain in four months amid surging energy costs

"In a fresh sign that inflation is gaining momentum, consumer prices rose 0.4 percent in February, the biggest increase in four months.

Although rising energy costs were a main reason for the spike in prices, underlying core consumer prices rose 0.3 percent, a bit faster than analysts had expected.

The report came just a day after the Federal Reserve raised short-term interest rates and issued a fresh warning about inflation, roiling stock and bond markets and raising the prospect of a longer and steeper series of future rate hikes.

Although sharp increases in energy costs — including gasoline — led the way in February, many other prices including airfares, medical care and education costs also went up."

http://www.msnbc.msn.com/id/7274381/
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Can anyone translate this shit into laymen's terms? What the fuck is this all about?

[Dave Reynolds]

1. I don't know if this says it all, but

producers and transportation are passing the increased energy costs on to us now. So, not only do we pay more for our OWN energy, we pay more for theirs.

[Randi_Listener]

2. So are we semi-fucked now or proper fucked?

[Dave Reynolds]

3. I'm thinking we

are unlubed and unkissed and truly fucked.

[Danmel]

8. We're not only merely fucked

We're really most sincerely fucked.

[Randi_Listener]

9. What's the next fucking step?

How will we know that this shit is continuing?

[reprobate]

12. The next fucking step is a Bush reach-around.

[Randi_Listener]

16. Will fucking inflation continue to rise?

Where is the cap to this shit?

[screembloodymurder]

17. With inflation at the commodity level running at 30%

we are in for months of rising interest rates. That will slow down the growth of housing and auto sales and GM will face bankruptcy. Without the rate increases the dollar will collapse. It may anyway.

[Randi_Listener]

18. What's the counterweight to this shit?

[wiggs]

4. Inflation

What, besides computers and electronics, is cheaper than it used to be? For the last several years, when our government has been telling us that inflation is low, I have the impression that most things I buy in Southern California are much more expensive. Clothes, food, entertainment, home furnishings, new construction, servicies, utilities...ALMOST EVERYTHING is significantly more costly.

Do we "buy" that inflation has been relatively low? I don't.

[Iowa]

6. The CPI can't be trusted...

The CPI is set by the U.S. Department of Labor - Bureau of Labor Statistics. You're instincts are correct. They've been rigging the numbers with "hedonic" adjustments (among other things). Example: say the price of computers declined by 10% compared to last year, but this year you get more memory and a faster processor. A "hedonic" adjustment would claim a price decline of 30% instead of 10%.

They pull this crap on many of the components of the CPI. It's a fraud. When you consider the fact that wages, Social Security increases, Inflation Protected Security increases, etc. are tied to the CPI... there is huge money involved. It's another way for our corporate owned government to stick it to the masses. There is a huge incentive for the Feds to understate inflation.

[GHOSTDANCER]

19. It's a big game that allows them to change the rules when ever they want??

WHHAAAAAAAA?

[Anakin Skywalker]

5. What I Wanna Know Is

When will we f**k back? Come on Dems. Don't take the rightwing crap lying down.

[Randi_Listener]

7. How the fuck do we go about doing that?

There has to be some goddamn adjustment to be made in this shit.

[GHOSTDANCER]

10. If anyones manipulating the inflation, It's a game being played between

Greenspan and large corporations who cook books.
And do you want to fuq back or fight back? :crazy: You should really only worry about how you are fighting back. They say there is no revolution like your own. You can do it on a small basis everyday. All it takes is a little knowledge and enough discipline and eventually there will be enough of us doing these same things to make a real impact.

[VegasWolf]

11. Bush economy. Anybody think different. Doh. n/t

[applegrove]

13. Well it too a while. Now the Oil gut it finally costing the rich. But it

took a good two years.. because USA was not at full capacity..what with all the job losses and imports lowering prices.

[Voltaire99]

14. The "prospect" of steep interest rate hikes? LOL!

Prospect, eh?

These cheap rates are underwritten by Asia, which is pulling out of America, Inc. As the foreign capital trails off, rates will take off.

For years, left economists have been pointing out the idiocy, and lethality, of our situation. And in the past few weeks, you could hear it be muttered on the right from economists at Morgan Stanley to Reagan's ex-assistant treasury head.

That our crisis is being discussed in the mainstream press--even if not very fully or accurately--can only mean that our masters have decided it's time to start letting NASCAR Murrica in on the bad news, too.

Hold on to your hats.

[Randi_Listener]

15. Which fucking rates will take off? Consumer accounts and shit?

Or just motherfucking borrowing rates?

[lovuian]

20. inflation is here Housing Medical Food Oil HELLO!!!

and its not going to decrease its going to get worse!!!