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US Wholesale Inflation Rises by Most in 3 Years
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Re: US Wholesale Inflation Rises by Most in 3 Years
#222.8% doesn’t seem that crazy to me? Don’t we target like 2-2.5?
That is the rise from one year ago in the "less-volatile PPI metric that excludes food, energy and trade services". This month was a 0.6% rise. So some people might think about how more months of 0.6% rise would cause the yearly one to increase gradually, up to 7.2% eventually if there are 12x 0.6% months. That would be pretty high. And then headline figure PPI was even higher at 0.9% for the month, 3.3% year.
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Re: US Wholesale Inflation Rises by Most in 3 Years
#23And this is after they massaged the numbers, to avoid getting fired?
Now we only get to hear if inflation is "Aladeen" or "Aladeen"
Re: US Wholesale Inflation Rises by Most in 3 Years
#24Over the years I have read a few articles or blogs that make the argument that if government inflation figures in the US were calculated as they do in Europe, then our reported US inflation figures would be much higher. Can anyone here verify this? Our main problems involve under the table unreported to the public military expenditures. If you look at a map of our military bases, we have many bordering China. I think…
Likely very specious. Inflation is an emergent property. CPI is measured by looking at consumer prices which is pretty transparent. The underlying causes may be obscured and, in fact, we see a lot of debate on the causes but that is irrelevant to actually measuring CPI.
Well, look at the history of removing things like living necessities and increasing things that have dropped in price like TVs.
Calculation of CPI is deranged by the cherry picking of what they measure.
Re: US Wholesale Inflation Rises by Most in 3 Years
#25Oh no someone is getting fired again. This poor soul forgot that telling the truth is forbidden
Re: US Wholesale Inflation Rises by Most in 3 Years
#26[deleted]
Re: US Wholesale Inflation Rises by Most in 3 Years
#27Over the years I have read a few articles or blogs that make the argument that if government inflation figures in the US were calculated as they do in Europe, then our reported US inflation figures would be much higher. Can anyone here verify this? Our main problems involve under the table unreported to the public military expenditures. If you look at a map of our military bases, we have many bordering China. I think…
> I have read a few articles or blogs that make the argument that if government inflation figures in the US were calculated as they do in Europe, then our reported US inflation figures would be much higher.
Do you mean the other way around? The EU headline inflation rate doesn't include costs of owning a home like the US' does (owner's equivalent rent), which, as you might have guessed if you have ever wanted to own a home, is a component that has been quite inflationary, at least as far as recent memory goes. Or maybe those blogs were talking about some point a long time ago when that component pulled the US figures down (e.g. during the last housing crash)? What specific details did they give?
Re: US Wholesale Inflation Rises by Most in 3 Years
#28[flagged]
> I dont think it’s the tariffs. I really think the entire category of merchants looked at each other and figured it was fine to raise prices.
Those statements aren't contradictory. Pricing in non-commodity goods is always a human phenomenon, driven ultimately by the idea that a business can 'get away with it' without losing too many customers to competitors.
Tariffs, on the other hand, provide a good reason/excuse to raise prices. Affected firms see their cost structures blown up, so they have to raise prices at least somewhat. Unaffected firms see that their competitors are raising / must raise prices, so they know that they can raise their own prices in the now less-competitive market. That's how and why tariffs work: they give domestic firms protection to have profits in excess of what they would have under a free trade counterfactual.
Any argument that tariffs don't raise prices is a very long-term one, relying on the idea that it will be easy to open new firms and expand domestic production to ultimately return to a competitive market. This has nearly no effect on short-term pricing, and it's why the least-damaging changes to tariff policies are long-run and well-telegraphed plans, slowly implemented.
Re: US Wholesale Inflation Rises by Most in 3 Years
#29[flagged]
I think it’s a combination of a number of things:
Tariffs
Price gouging and folks continuing to pay
Lack of alternatives - have a garden? Know how to work on a car? Etc.
Genuine competition for resources around the world and increased demand for those resourcesRe: US Wholesale Inflation Rises by Most in 3 Years
#30[flagged]
You don't think it is the one thing being wielded as a personal enrichment device by a giant man child that cheats at golf is the cause? Well okay good luck with that.