July 31, 2007


Core inflation rises moderate 0.1% in June (Rex Nutting, 7/31/07, MarketWatch)

Core consumer inflation increased 0.1% for the fourth consecutive month in June, pushing the yearly gain in core inflation down to the lowest level in three years, the Commerce Department said Tuesday.

The core personal consumption price index rose 1.9% in the past year, the lowest inflation since early 2004, and just within the Federal Reserve's unofficial comfort zone of 1% to 2% for core inflation. Core inflation excludes volatile food and energy prices.

Posted by Orrin Judd at July 31, 2007 10:24 AM

I'm completely aware that food price increases aren't due to inflation, but GOOD GRIEF milk is absurdly more expensive now than it was six months ago...ethanol backers can go straight to hell.

Posted by: b at July 31, 2007 11:38 AM

It's still a loss leader at the gas station and still absurdly cheap.

Posted by: oj at July 31, 2007 12:24 PM

1. Who buys their milk at the gas station?
2. Milk admittedly still is pretty cheap.
3. Milk would be much, much cheaper than it is today if it were not for the absolutely idiotic push for ethanol.

Posted by: b at July 31, 2007 1:01 PM

At approximately 2%, inflation is low even by historical standards. For the past 10 years it averaged 2.7%. Since 1980, it averaged about 3.5%.

The other factor that CPI does not account for is improvements in quality. A $2,000 computer today is far superior to a $2,000 computer of five years ago.

Posted by: Kurt Brouwer at July 31, 2007 1:13 PM

About 20 or so years ago, Vermont dairy cows were slaughtered to drive milk prices up. Sen. Leahy was one of the sponsors of the effort. They've been high ever since, so I guess it worked. Thanks senator.

Posted by: erp at July 31, 2007 2:23 PM

Yankees do.

Posted by: oj at July 31, 2007 3:28 PM

Who knows exactly what Oj is thinking when he repeats one of his truisms over and over, but regarding the "notin' is cheaper" one - I don't think so.

It takes all of ten seconds to realize anything the government has touched, directly or indirectly, generally cost much more now than in prior periods. And as a prior poster pointed out, quality, performance, and time to completion have not improved to explain the cost increase, (mostly they get worse along with cost with government involvement).

Here in Cleveland, watching the government goobers try to rebuild our airport is high entertainment. So is the billion dollar bond fiasco meant to replace a few schools.

Any idea how much we our paying for basic teaching services (that suck)? Answer, alot more than we did before, any before.

I don't see weapons systems getting cheaper ...invasions aren't exactly chump change yet.

Our space initative out measure in obtuse billions of dollars with 40 year time lines.

The things that have gotten cheaper have gotten that way due to productivity increase and technological advance. The governement threatens these two things. In the United States we have been successful becuase governemnet has, up to now and barring the 30's, only been a drag on productivity. In the Soviet Union, it killed positive growth and made it go in reverse.

The goverment, like all parasites will suck blood until the host is dead - if given the chance.

Posted by: Perry at July 31, 2007 11:48 PM

Well that's pretty comprehensive nonsense. Just take a look at the hours of work needed to buy a product and then at the product. Your Grandad worked for 3 months to cover the cost of a black and white TV with a tiny screen. You work a week to cover the cost of a 50" HD-TV with DVD player built in.

The WoT is indeed chump change. At the end of WWII the national debt was 150% of GDP. For the Brits to defeat Napoleon took them to 250%. We're
winning our global war on a balanced budget in danger of drifting into surplus.

Our lives are so much easier than our ancestors that such fretting can only be the product of monumental ignorance.

Posted by: oj at August 1, 2007 9:07 AM