6.3% Inflation in 2007

[retire@40]

The Labor Department reports that wholesale inflation rose by 6.3 percent in 2007, the biggest annual gain in 26 years, reflecting big increases in energy costs.

 

[audreyh1]

That was the PPI.

We're still waiting for the CPI.

Not that either number really means anything......

Audrey

 

[FinanceDude]

All I care about is my PERSONAL inflation..........

 

[OAG]

CPI tomorrow at 8:30 am.

 

[cute fuzzy bunny]

All I care about is my PERSONAL inflation..........

You get a percentage of that too?

 

[HFWR]

Er, when personal inflation is on the rise, it's important to focus on the TIP(s)...

 

[FinanceDude]

You get a percentage of that too?

No, I use Vanguard for that..........

 

[cashflo2u2]

Of course that is the headline, but buried in the release was the fact that Dec. PPI declined by .1. The press loves big negative headlines.

 

[TromboneAl]

Er, when personal inflation is on the rise, it's important to focus on the TIP(s)...

And don't forget to do a rollover.

 

[barbarus]

Inflation is well contained. These numbers are merely illusionary.
Just ask the Federal Reserve.

There is no way we'd be seeing the vigorous rate cuts that we have, and even more to come, if there was a real problem with inflation.

Right?

 

[VaCollector]

Inflation is well contained. These numbers are merely illusionary.
Just ask the Federal Reserve.

There is no way we'd be seeing the vigorous rate cuts that we have, and even more to come, if there was a real problem with inflation.

Right?

Oh that's a definite YES!....don't forget....THEY are the Federal Government and THEY are here to help YOU!!

 

[twaddle]

Right?

You're being facetious, but you're right.

The fed thinks a recession will dampen inflation, which gives them room to cut. The bond market is still estimating that inflation will average around 2% over the next 10 years! (I hope they're right.)

 

[roger r]

That measely 1.2% real rate on I-bonds might not seem too bad?

 

[barbarus]

Good gravy Twaddle, ten years is a LONG time to average. We could have several years of hyperinflation and still get an algebraic mean of 2%

 

[barbarus]

And to expand on the idea, if the CPI is as high as the PPI, and the Fed strangles the recession before it even gets started using cuts, won't we see only a small dip in inflation and then off to the races.

Any recession won't have the time to significantly lower inflation before these seemingly peremptory cuts re-light the economy.

Looks like gasoline on a fire thats hardly begun to die out.

 

[BigBob]

CPI of 4.1 in 2007

Consumer prices see biggest rise in 17 years - Yahoo! News

"The Consumer Price Index, the most broadly used gauge of inflation, rose 4.1 percent in 2007, well ahead of the 2.5 percent increase posted in 2006 and the largest 12-month rise since a 6.1 percent increase in 1990."