Consumer Prices in U.S. Rose in February as Gasoline Jumped The cost of living in the U.S. rose in February by the most in 10 months, reflecting a jump in gasoline that failed to spread to other goods and services. The consumer-price index climbed 0.4 percent, matching the median forecast of economists surveyed by Bloomberg News, after increasing 0.2 percent the prior month, the Labor Department reported today in Washington. The so-called core measure, which excludes more volatile food and energy costs, climbed 0.1 percent, less than projected. The biggest jump in gasoline in more than a year accounted for about 80 percent of the increase in prices last month, leaving households with less money to spend on other goods and services. Federal Reserve policy makers say the advance in fuel costs will be temporary, and most see little risk inflation will flare out of control as unemployment exceeds 8 percent. There are some worries from the energy prices perspective, but the Fed and most people realize that the increase will probably be transitory, said Benjamin Reitzes , an economist at BMO Capital Markets in Toronto. Outside of energy prices, there is not much risk for the consumer. Stock-index futures held earlier gains after the report. The contract on the Standard & Poors 500 Index maturing in June rose 0.2 percent to 1,399.3 at 8:31 a.m. in New York. Treasury securities trimmed losses,, with the yield on the benchmark 10- year note at 2.32 percent, down from a high of 2.35 percent in the minutes before the data was released. Survey Results Estimates of the 80 economists surveyed ranged from increases of 0.2 percent to 0.6 percent. Consumer prices increased 2.9 percent in the 12 months ended in February, the same as in January. The gain in the core gauge followed a 0.2 percent increase in January and was smaller than the 0.2 percent gain median forecast of economists surveyed. They were up 2.2 percent for the last 12 months, compared with 2.3 percent for the 12 months ended in January. Todays report showed energy costs increased 3.2 percent from a month earlier. Gasoline jumped 6 percent, the most since December 2010. Escalating oil prices has pushed up the cost of the fuel. Regular gasoline in February averaged $3.56 a gallon, or 18 cents more than January, according to AAA, the nations biggest auto group. It was the highest monthly average since September. The cost has kept climbing, reaching $3.82 on March 14, the highest in 10 months. Feds View The Fed, nonetheless, said it anticipates that the pressure on consumer prices from energy will wane later in the year. Inflation has been subdued in recent months although prices of crude oil and gasoline have increased lately, the Federal Open Market Committee said in a statement following a March 13 meeting. Oil will push up inflation temporarily, but the committee anticipates that subsequently inflation will run at or below the rate that it judges most consistent with its dual mandate of stable prices and maximum employment. The central banks preferred inflation gauge, the measure calculated by the Commerce Department and tied to consumer spending, rose at a 1.2 percent annual rate in the fourth quarter. Fed officials have set an explicit inflation goal of 2 percent. Todays report showed food costs were little changed, the least since July 2010. Clothing Less Expensive The increase in the core measure reflected higher prices for new cars and hotel stays. Clothing costs dropped by the most since July 2006, and used-cars were also cheaper last month. We feel like inflation will moderate, Charles Holley, chief financial officer at Wal-Mart Stores Inc. (WMT), said during a March 7 investor conference. The one wildcard, though, is going to be gas prices. If oil continues to go up, I think that could be a drag on economies around the world. Paychecks are failing to keep up with even limited inflation, another Labor Department report today showed. Hourly earnings adjusted for prices dropped 0.3% in February, and were down 1.1 percent over the past 12 months, todays report showed. A Labor Department report yesterday showed prices paid to producers rose 0.4 percent in February, paced by the gain in energy expenses. Import prices, reported March 14, also climbed 0.4 percent. The CPI is the broadest of the three monthly price measures from the Labor Department because it includes goods and services. About 60 percent of the CPI covers prices consumers pay for services ranging from medical visits to airline fares and movie tickets. http://www.bloomberg.com/news/2012-...-rise-on-fuel-other-costs-little-changed.html No wonder Obama and Chu are in total panic mode. They are about to be fired for incompetence. _
are you better off today than you were 4 years ago? home prices have tanked as has equity fuel prices are outrageous underemployed has grown wages are stagnant while prices soar insurance rates for everything has risen utility rates have risen national debt continues to rise with the only proposed fix is to take more money from the working folk vs fixing the spending problem other than a few misguided Kool Aid drinkers here, the answer is no, people are not better.
I've held my own, but only by seeing this coming and acting accordingly. Obama has prolonged this recession, and his energy policies could cause even more damage to America. He must go, and his defeat will cause incredible economic gains and confidence. The immediate progressive reaction will be shock and screams that it is Obama's recovery come back to life. LOL! _
Gas Prices May Drop 50 Cents... Gas prices could soon drop 50 cents a gallon Oct 20, 2012 - Early fall run-up in gasoline prices is fading fast. With inventories rising and demand slowing, wholesale gas prices are plunging. Consumers should see some major price cuts at the pump within weeks. Figure an average of $3.35 next month
Granny says we can grow our way outta foreign energy dependence... Colorado national lab and industry team to turn grass into gasoline 12/28/2012 - The goal is to turn a pine tree into a tank of gasoline, and it turns out it is just as difficult as it sounds.
And we were worried about the $2/gal. if Bush got elected... Longest Streak Ever for $3-Plus Gas September 17, 2013 -- The national average price of gasoline will surpass $3.00 a gallon Tuesday for the 1,000th consecutive day -- the longest stretch above $3.00 on record, according to the American Automobile Association (AAA).
Uncle Ferd `bout ready to put the turbo-charger back inna pick-`em-up truck... Oil plunge is threat and boon to global economies Nov 28,`14 ~ A renewed plunge in oil prices is a worrying sign of weakness in the global economy that could shake governments dependent on oil revenues. Yet it is also a bonus for consumers as prices fall at the pump, giving individuals more spending money and lowering costs for many businesses.
Just wait till Jeb Bush's cronies start sellin' our oil supplies overseas - then ya really gonna see gas prices jump up here... Oil climbs on weak US dollar, Middle East worries Sun, Oct 11, 2015 - Global oil prices hit multimonth peaks on Friday on the back of the struggling US dollar and increasing geopolitical turmoil in the crude-rich Middle East, dealers said. Brent North Sea crude for delivery in November added US$0.56 to stand at US$53.61 per barrel just after midday in London, having earlier hit US$54 the highest since late August. See also: House Passes Bill Repealing Ban on Crude Oil Exports in Place Since 1975 October 12, 2015 | The U.S. House of Representatives passed a bill on Friday that repeals the ban on crude oil exports, which was originally imposed by the Energy Policy and Conservation Act of 1975 as a response to the 1973 oil crisis.