Consumer Prices Grew in September and Housing Starts Slid 6% (3.5% CPI-04)

http://www.nytimes.com/aponline/business/AP-Economy.html

October 19, 2004
Consumer Prices Grew in September and Housing Starts Slid 6%
By THE ASSOCIATED PRESS

Filed at 11:51 a.m. ET

WASHINGTON (AP) -- <snip>The overall CPI figure showing a 0.2 percent increase in September matched economists' expectations. The 0.3 percent rise in core prices, however, was slightly bigger than the 0.2 percent increase some economists were forecasting.<snip>

In another report, housing construction fell by 6 percent in September to a seasonally adjusted annual rate of 1.898 million units, the Commerce Department said. The decline -- steeper than analysts were expecting -- followed a 1.8 percent rise in housing activity in August, which turned out to be stronger than initially estimated.<snip>

Medical care costs rose by 0.3 percent and education costs rose by 0.6 percent in September. Lodging costs jumped by 2.9 percent in September.

In the first nine months of this year, overall consumer prices are rising at a 3.5 percent annual rate, compared with a 1.9 percent increase for all of 2003. Much of the pickup reflects higher costs for energy products.

never mentions inflation?
With prices on everything (health care, real estate, food, gas, oil, tuition, local taxes, medicine etc) skyrocketing, they realize it won't fly.
And income is down by 9% over two years.

The economy of the US will be in toilet bowl in a year or two. We probably could handled one or two more major ones, but chimpy has implemented five or six that will be in full effect shortly.

The economy was a little shaky before he took office, but I think it will be in ten fold worse shape when he leaves. These freakin experts can talk all they want, but the average Joe feels it his pocket book.

It is always year over year so as to not affect the election. The bad news becomes obvious with the year over reports in Nov, Dec and 1/05! But by then Bush is safely past the election.

Not that we have a right wing GOP controlled media - they just act like they are.

:-)

Think gas, natural gas, and heating oil only went up 3.5% this year? I wish that were true! Gasoline has gone up over 20% this year. So has diesel.

Just how do the gov't economists think the goods get transported to the stores? Gee, maybe TRUCKS! Eventually those trucking firms are going to raise shipping prices, then that goes to the stores, and they have to elevate prices. Then, everything goes up with that lag. So, ok, maybe they figure that eventually these energy costs show up in CPI. Maybe correct, but they haven't calculateda reliable threshhold and lag.

And, the average consumer has to spend direct cash on the three things mentioned in my first paragraph. But, that doesn't count toward inflation. So, that reduces the household cash flow for those things that are going up in price at the store. Result: Less goods and service being sold and macroeconomic stagnation.

The overall inflation projection should not be based strictly on data from the past 6 month moving average, but rather a projection of the impact over the following 6 months. That, however, would require too much thought, skill, and effort.

Nice going guys.
The Professor

6 months so that we are looking at 5% by Spring, unless these 55's drop back to 35 for oil.

Remember in 2000 Bush said oil at 28 was too high and the fault of Clinton and Gore for not being tough on the Saudi's?

I wonder if our media remembers those debates?

It's kind of hard to see if you're really turning a corner, especially when you've got your head up someone's else's a**.