June 14, 2005

...AND LOWER...:

Wholesale Prices Dip, Retail Sales Slip (MARTIN CRUTSINGER, June 14, 2005, The Associated Press)

Wholesale prices plunged 0.6 percent in May, the biggest decline in more than two years, as the cost of both energy and food retreated.

The Labor Department reported Tuesday that the decline in its Producer Price Index followed gains of 0.6 percent in April and 0.7 percent in March, hefty increases which had raised worries that inflation was threatening to break out of the moderate pattern of the past several years.

Three-fourths of the May decline reflected a big 3.5 percent drop in energy prices after three months of sizable gains in this area. But prices were contained in other areas as well with so-called "core" inflation, excluding energy and food. That number rose by just 0.1 percent in May, down from a 0.3 percent jump in April.

Posted by Orrin Judd at June 14, 2005 12:11 PM

But, but oil prices just jumped again, and gasoline has stopped its decline and will be rising in the coming weeks, and beef is up, and I don't know how to keep my neck from getting whiplash with all these numbers. I need a nice soft cushion.

I blame Greenspan.

Posted by: ratbert at June 14, 2005 4:02 PM

Beef is actually down in my area. Oil prices will be coming down in due course as supply will increase because cartels don't work(everyone jumps the queue), and cartels that control far under 50% of the world's accessible supply of something are even less likely to work.

Housing prices are up but not monthly costs(the important number).

Posted by: bart at June 14, 2005 4:35 PM

The price of a gallon of gas jumped 23 cents this afternoon here in western Michigan.

Posted by: Dave W. at June 14, 2005 10:33 PM