Tuesday, October 18, 2005

Highest Inflation since 1974

Looks like energy prices are making inflation go way up.

Price increases were led by a 7.1% rise in wholesale energy prices, the biggest jump in 15 years. Food prices also soared, rising 1.4% on a record 49% increase in egg prices.

Core prices, which exclude food and energy, increased 0.3% as prices for capital goods increased 0.3%. Car prices increased 0.9% and heavy truck prices climbed 1%.

At least the Core prices are still gaining very modestly. That means that the high energy prices haven't trickled into the prices of regular goods yet. When that core number goes up it is time to start worrying about the economy. Well, worrying more that is. Also I wonder why egg prices went up so much? Could it be that bird flu? That is kind of a weird statistic.

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