March CPI Report
Yesterdays PPI despite media attempts to put a spin on it, clearly indicated stagflation & inflation are markedly on the rise. Please refer to Market Soapbox 04/19/05 for details.
This months year over year CPI had the largest increase since 1998. Today's CPI validates that we are seeing the same levels of stagflation through out the distribution chain. The media reported that total CPI up 0.6% and core CPI up 0.4%, the largest increase since October, but thats not the worst of it.
The year over year overall March CPI level jumped 3.1%, Energy costs +4% , Housing or shelter +4.4%, ex-energy & food +0.4%. Apparel went from -0.2% in 2004 to +3.4% in March 05. Apparently the Chinese are raising textile prices.
For the twelve months ending March 05, energy inflation clocked in at 12.4% and oil at 26.7%. For the first quarter 05, the annualized energy inflation rate was 21.1%, and oil at 39.6%. For 2004 transportation +6.5%, for March 05 +10.3%.
Food and beverage, and food at home indexes went up for the first time in four months +0.2%. This validates that due to increased energy costs, people are staying at home and eating out less.
Later today the Fed Beige book will paint an even grimer picture. Stagflation and the underlying economic growth that will hit late 2nd quarter are going to keep rates going up till year end.
Some Wall Street analysts demonstrated their complete detachment from reality by commenting that the numbers were benign, and if you stripped out housing, clothing, energy and food, that inflation was under control.
I think these MBA Wall Street Hoople Heads should try living without energy, food, clothing and housing. The last time humans tried this, we were naked, freezing, starving and living in caves.
March CPI Report
This months year over year CPI had the largest increase since 1998. Today's CPI validates that we are seeing the same levels of stagflation through out the distribution chain. The media reported that total CPI up 0.6% and core CPI up 0.4%, the largest increase since October, but thats not the worst of it.
The year over year overall March CPI level jumped 3.1%, Energy costs +4% , Housing or shelter +4.4%, ex-energy & food +0.4%. Apparel went from -0.2% in 2004 to +3.4% in March 05. Apparently the Chinese are raising textile prices.
For the twelve months ending March 05, energy inflation clocked in at 12.4% and oil at 26.7%. For the first quarter 05, the annualized energy inflation rate was 21.1%, and oil at 39.6%. For 2004 transportation +6.5%, for March 05 +10.3%.
Food and beverage, and food at home indexes went up for the first time in four months +0.2%. This validates that due to increased energy costs, people are staying at home and eating out less.
Later today the Fed Beige book will paint an even grimer picture. Stagflation and the underlying economic growth that will hit late 2nd quarter are going to keep rates going up till year end.
Some Wall Street analysts demonstrated their complete detachment from reality by commenting that the numbers were benign, and if you stripped out housing, clothing, energy and food, that inflation was under control.
I think these MBA Wall Street Hoople Heads should try living without energy, food, clothing and housing. The last time humans tried this, we were naked, freezing, starving and living in caves.
March CPI Report
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