LIVING OFF DIVIDENDS & PASSIVE INCOME

Here’s a great post from The Big Picture on the Consumer Price Index.

Its so funny, I’m reproducing the whole post.

CPI reveals that except for everything going up in price, there is no inflation

Original:

“Consumer prices surged last month on higher energy and food costs but underlying price pressures remained largely contained.”

Translation:

“Consumer prices surged last month.”

Here’s the breakdown:

“In January, energy prices rose 5%, after falling 2.1% in December. The advance was led by a 5.5% surge in electricity costs, the largest increase on record for that component. Gasoline prices last month rose by 6.4% and natural-gas prices increased 1.7%. Year over year, all energy prices advanced 24.8%.

Food prices were up 0.5% due to sharply higher fruit and vegetable prices. Medical-care prices increased 0.1%. Housing prices, which account for 40% of the index, rose 0.5%. Prices for new vehicles increased 0.6%. Clothing prices increased 0.3%, while education and communication rose 0.4%.”

So to reiterate, except for everything going up in price, there is no inflation . . .

Source:
Consumer Prices Jumped 0.7%
As Food, Energy Costs Climbed
WSJ, February 22, 2006 8:49 a.m.
http://online.wsj.com/article/SB114061330703180066.html

• Mortgage Lenders Squeeling Like Pigs: WAMU First To Cry Uncle Despite Ben Bernanke's optimism that the sub-prime issues wouldn't spread to the rest the of the economy, not only is it spreading to the rest the of the economy, its become our favorite export to global economies too!The resulting liquidity crunch has already begun. Many banks just announced that they'll......
• Is It Time To Buy Real Estate? Over the past few weeks, several of friends have asked me if its a good time to buy a house now that real estate prices have bottomed. Encouraged by the media, everyone seems to think that home prices have bottomed out and the recovery is about to begin. Even Jim......
• Turning Japanese Here's some interesting info from Bill Bonner, author of Empire of Debt: The Rise of an Epic Financial Crisis The Fed is still talking about the risk of inflation...while the risk of deflation rises daily. Deflation happens when liquidity dries up. Suddenly, money disappears. Lenders don’t lend. Spenders don’t spend.......

• Consumer Confidence in United States has Increased The level of consumer confidence in the United States rose unexpectedly in November, rebounding from a record low. This surprising change apparently came as concerns about the rising rate of unemployed coupled with tumbling financial markets was alleviated by falling gas prices. The Conference Board's index of consumer confidence suddenly......
• How The Cost Of Living Has Increased In The Last Two Years. Sitting down to read the paper on Sunday is normally a treat - just me, a cup of coffee and the comfortable Sunday Times. But this weekend when I got to the Business section, I was blown away by an article about how the cost of living has been skyrocketing......
• How to Get Advertisers for Your Blog If you've got a blog with enough traffic, you might want to monetize the space by drawing in advertisers. If your blog is new, it's going to be a hard sell to get people to want to advertise on your blog but you can do it. Whether your blog is......

[All content is copyright of Living Off Dividends & Passive Income]

Random Posts

• October 7, 2008 -- Buying A House For $1.75
• April 6, 2007 -- Friday Update
• September 12, 2007 -- Russians get the day off to make babies
• November 21, 2006 -- Where To Invest Your Can’t Lose Money?
• January 5, 2007 -- Happy New Year
• December 23, 2008 -- 10 Worst Real Estate Markets In 2009
• April 20, 2008 -- Earn Passive Income From Domains