Midya's Weblog

PASSING ON COSTS, AND A CLASS INTO HOW TO IGNORE CAUSES

Wholesale prices rise in March as food costs jump

Wholesale prices rise in March as food costs jump, but core inflation remains all but flat

http://finance.yahoo.com/news/Wholesale-prices-rise-in-apf-299827519.html?x=0&.v=4

Christopher S. Rugaber, AP Economics Writer, On Thursday April 22, 2010, 12:34 pm EDT

WHAT TO NOTICE HERE IS ALL THE FREE MARKET RHETORIC.  RUGABER SPEAKS OF COMPANIES RELUCTANT TO PASS ON HIGHER COST IN LIGHT OF TIGHT CONSUMER FINANCES.  SUCH SUPPLY AND DEMAND IS A MECHANISM OF THE FREE MARKET ONE WHICH THE LEFT REFUSES TO ACKNOWLEDGE IN FAVOR OF GOVERNMENT AS THE SOLE PRICE WATCHER.  HE ANOUNCES THIS AND A LOW RISE IN CORE INFLATION AS A VICTORY FOR THE LITTLE MAN.  TAKE THAT THOUGHT AND READ THE LAST PARAGRAPH QUOTED BELOW.  HAS THE INABILITY OF BUSINESSES TO PASS ON PRICE INCREASES EVER JUST LEFT BUSINESS TO CONTINUE AS USUAL?  NO.  EITHER THE BUSINESS GOES OUT OF BUSINESS OR PRICES CONTINUE TO RISE AND PEOPLE CONTINUE TO PAY WHILE MAKING SACRIFICES IN OTHER AREAS OF THEIR LIVES.   WHAT DOES THE LEFT THINK CAUSES SHORTAGES AND RATIONING IN THEIR BELOVED UTOPIAS LIKE, SAY, THE USSR OR CUBA?  STILL, HE HAS LITTLE CURIOSITY INTO WHAT CAUSES THESE PRICE RISES BEYOND THE SIMPLISTIC ENERGY COST EXCUSE.  THE IMPLICATIONS OF THIS THOUGHT ARE WHAT THE LEFT REFUSES TO ACKNOWLEDGE AND WHY THEY CONTINUE TO LIVE IN AN ALTERNATE REALITY…ONE IN WHICH UNFORTUNATELY THE PRODUCTIVE STILL PICK UP THE LEFT’S TAB.

Consumers are facing smaller price increases, as many companies are reluctant to pass on higher costs. Last week, the Labor Department said the consumer price index rose only 0.1 percent in March. Excluding food and energy, the core consumer index was unchanged.

Core consumer prices rose by just 1.1 percent in the past 12 months, the department said last week, the best showing since January 2004.

Several economists noted that the wholesale price report showed increasing costs at earlier stages of production. That could pressure companies to raise prices later this year. Crude goods prices, excluding food and energy, rose 6 percent in the last 12 months, the department said.

But with unemployment high and credit tight, consumers’ spending power is crimped, limiting the ability of retailers and other firms to pass on the higher costs.

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This entry was posted on April 23, 2010 by in Uncategorized.
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