Consumer Prices in U.S. Rose in February as Gasoline Jumped

Discussion in 'Economics & Trade' started by DonGlock26, Mar 16, 2012.

  1. DonGlock26

    DonGlock26 New Member Past Donor

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    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 & Poor’s 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.
    Today’s 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 nation’s 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.
    Fed’s 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 bank’s 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.
    Today’s 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, today’s 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.


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  2. sec

    sec Well-Known Member

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    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.
     
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  3. DonGlock26

    DonGlock26 New Member Past Donor

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    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!





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  4. MolonLabe2009

    MolonLabe2009 Banned

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    Thanks Obama!
     
    DonGlock26 and (deleted member) like this.
  5. DonGlock26

    DonGlock26 New Member Past Donor

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    LOL!! He will be thanked by being fired in November.

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  6. waltky

    waltky Well-Known Member

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    Gas Prices May Drop 50 Cents...
    :woot:
    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
     
  7. waltky

    waltky Well-Known Member

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    Granny says we can grow our way outta foreign energy dependence...
    :grandma:
    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.
     
  8. waltky

    waltky Well-Known Member

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    And we were worried about the $2/gal. if Bush got elected...
    :roll:
    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).
     
  9. waltky

    waltky Well-Known Member

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    Uncle Ferd `bout ready to put the turbo-charger back inna pick-`em-up truck...
    :wink:
    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.
     
  10. Papastox

    Papastox Well-Known Member

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    Why are you bringing up something from 2 years ago?
     
  11. waltky

    waltky Well-Known Member

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    Just wait till Jeb Bush's cronies start sellin' our oil supplies overseas - then ya really gonna see gas prices jump up here...
    :omg:
    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.
     

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