Consumer Prices Jump, Trade Gap Narrows

http://story.news.yahoo.com/news?tmpl=story&ncid=578&e=6&u=/nm/20040414/bs_nm/economy_dc


Consumer Prices Jump, Trade Gap Narrows

By Tim Ahmann

WASHINGTON (Reuters) - U.S. consumer prices logged an unexpectedly sharp rise in March as the cost of energy, clothing and lodging jumped, according to a government report on Wednesday suggesting long-dormant inflation may be rearing its head.

A separate report showed the U.S. trade gap narrowed in February as the weak dollar and stronger economic growth propelled both exports and imports to record levels.

The Labor Department (news - web sites)'s consumer price index, the most widely used gauge of U.S. inflation, rose 0.5 percent in March after a 0.3 percent increase in February.

The closely watched core CPI, which strips out often-volatile food and energy costs, surged 0.4 percent, the biggest increase in nearly 2-1/2 years.

Not the quantity of imports, just the cost.

I don't buy it often, but I think that will be a real bite in the wallet to restaurants and families with children. When I read the article about it the Milk Board (or whatever it is) gave so many reasons for the price hike, it made no sense. Mad Cow. Huh, where? Atkins diet (people buying more meat, so it's more profitable for farmers to have beef cows instead of dairy cows) and then the general overall hard times for farmers.

I've noticed my grocery bill has been going up for the last 6 months or so. This month it has spiked and I buy pretty much the same things every week.

These are the things the talking heads conveniently forget about when they talk about the "roaring" economy. It's not just Wall Street dumb butts.

Sure beats all the trouble it would take to close the actual trade gap!

/sarcasm off