So, are we having fun yet???

Well, today the Wholesale Price Index came out and not surprisingingly, it was not good.

First, the index itself was only up .2% for the month of April. .2% only? One needs to start raising questions about how the US Labor Department computes this number. According to the Labor Department the index appears to be fairly stable. And yet, consumers are paying higher and higher prices FOR THE THINGS THEY NEED!!! So what does the index include? Clearly, if the index is that stable then it is probably because it includes items that are not going up. In fact, the index probably includes irrevelant items that may even be going down. This way the index includes items that offset the price increases that we do need and behold(!) the index appears more stable when, in reality, it is not.

But, this past month, the core rate was up .4%! The core rate is the index without the "volatile" food and energy items. For this to go up is really bad news and the market took it as such. If the core rate is up .4% then it indicates that price increases may be spreading to the non-food and non-energy areas. In other words, inflation is spreading across the board.

So, are we having fun yet. Are we enjoying the higher prices for fuel to go to work? Are we enjoying paying higher and higher prices for the food we eat. Are we enjoying the higher prices for health care insurance, car insurance and house insurance. Everything is going up except our paychecks. Having fun yet?