3 Comments

• 1. AgentFear  |  January 17th, 2008 at 9:10 am

  Der Fuhrer sez itz all goot. It muz be all goot!

  WASHINGTON (AP) — Wholesale inflation shot up in 2007 by the largest amount in 26 years even though falling gasoline costs allowed price pressures to moderate in December.

  The Labor Department reported that wholesale inflation was up 6.3 percent for all of 2007, reflecting a huge increase for the year in various types of energy costs ranging from gasoline to home heating oil.

  Moof along, nuzting to zee.

• 2. anarchist  |  January 17th, 2008 at 12:08 pm

  core inflation and the CPI are pretty flawed concepts, there importance in fed calculations has decreased quite a bit over the years. Inflation enters the economy at certian points(mostly credit dependant sectors) and takes a while to diffuse itself throughout the economy. The fed does alot more of watching inflation in sectors nowadays. Look at things like the massive rise in finance, or the rise in housing followed by it’s percipitious fall. The problem is really that the fed is getting too good at it’s job, it’s tending to affect only sectors now rather than the full economy.

  Anyways diffrent levels of inflation diffusion will effect you differently depending on what your situation is. If you’re worried about losing savings on dollar denominated assets something like MZM or AMS is a better guide to how much purchasing power you’ll lose in the long run. If you have a semi-fixed income(like an employee that can’t give himself a raise) or fixed-income, then CPI will effect you far more, the core-inflation you cite is meaningless to poorer people that spend large amounts of income on food and energy. If you own a buisness sector wide inflation will be your main concern.

• 3. keefer  |  January 18th, 2008 at 4:42 am

  Mark, didn’t you warn our trolls about comparing the President to Hitler?