August 17, 2006

ANYONE WANT TO BUY MY KRUGERANDS?:

Drop in clothing prices key in lowering inflation (Martin Crutsinger, 8/17/06, The Associated Press)

Core consumer prices rose by 0.2 percent, the smallest increase in five months, the Labor Department reported one day after disclosing that core inflation at the wholesale level actually fell 0.3 percent.

Posted by Orrin Judd at August 17, 2006 12:00 PM
Comments

I wouldn't sell them yet.

I just went to Menards (like Home Depot) and got sticker shock for a 10' length of copper tubing (now $38, was about $15 2 years ago.)

Oil, Metals, & commodities not based up cheap labor (like clothes) are still high, and may go higher.

Their prices are due to a mix of high demand (not inflationary) and the US running the printing press at capacity (inflationary).

We aren't out of any woods yet. (But I think the Gold ads on Talk Radio are venturing into fraud land.)

Posted by: Bruno at August 17, 2006 12:14 PM

Commodities don't go higher.

Posted by: oj at August 17, 2006 12:38 PM

Bruno,

Just wait until that Chinese steel plant that ostensibly will have full production equal to that of current US/Europe production put together gets online. Those construction costs should go down pretty quickly.

Of course, that will likely be around the same time tariffs on Mexican cement get lifted.

Posted by: Brad S at August 17, 2006 1:37 PM
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