Here we are again, another day another article showing you how the small business owner has to pass on the higher prices to the consumer. As we all know Bubble ben only pays attention to the core consumer price index which of course excludes food and energy. What else is new, keep ignoring it and telling everyone there is no inflation, just like he says there was no recession and that the sub prime mortgage crisis was contained. How many more lies are we going to hear.
Inflation Hits Main Street: Small Businesses Raising Prices
Published: Friday, 8 Apr 2011 | 3:55 PM ET
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By: John Melloy
Executive Producer, Fast Money
If the drug store in Dillon, South Carolina founded by Ben Bernankeâs grandfather was still around today, it might be raising prices.
More than a quarter of small businesses are raising prices, or plan to soon, the highest amount in 28 months, according to the latest survey by the National Federation of Independent Business.
The net percent of small firms that are actually raising prices is five percent, the first positive reading for this survey since the aftermath of the credit crisis. The net percent that âplanâ to raise prices jumped to 21 percent in February from 19 percent in January, according to the poll of thousands of small businesses released earlier this week. Since 1986, the percent âplanningâ to raise prices has been a reliable leading indicator of the number that end up actually raising prices.
The steep positive slopes of these series lead us to believe we will see further advances in the April data,â said Joe LaVorgna, Deutsche Bank chief U.S. economist, in a report Friday that cited the NFIB data. âItâs going to be increasingly difficult for the Fed to argue that inflation expectations are stable. To do so will eventually strain their credibility.â
Large multinational conglomerates â who have the ability to hedge â can handle higher commodity prices resulting from the Fed's reflation play. But when it hits small business, the largest source of employment in this country, maybe itâs time for the Fed to rethink its position, economists and investors said.
The Fed chief is watching the core consumer price index, which excludes rising food and energy prices, but includes collapsing housing prices, as a benchmark for inflation. In the past, the central bank has not watched food and energy prices because they tend to be volatile. The survey from the NFIB, whose typical membership employs five people and reports average annual revenue of $350,000, is saying that food and energy matter more this time, because theyâre doing nothing but going up.
Beyond the money
Federal Reserve Bank of Dallas President was the latest member of the central bank to stray from Bernankeâs steadfast commitment to the second round of quantitative easing in place until the end of June.
âIndeed, it may well be that we should consider curtailing what remains of QE2,â said Fisher, a voting member of the FOMC, at a conference Friday. âThere is the risk that we might breach our duty to hold inflation at bay.â
Inflation Hits Main Street: Small Businesses Raising Prices
Published: Friday, 8 Apr 2011 | 3:55 PM ET
Text Size
By: John Melloy
Executive Producer, Fast Money
If the drug store in Dillon, South Carolina founded by Ben Bernankeâs grandfather was still around today, it might be raising prices.
More than a quarter of small businesses are raising prices, or plan to soon, the highest amount in 28 months, according to the latest survey by the National Federation of Independent Business.
The net percent of small firms that are actually raising prices is five percent, the first positive reading for this survey since the aftermath of the credit crisis. The net percent that âplanâ to raise prices jumped to 21 percent in February from 19 percent in January, according to the poll of thousands of small businesses released earlier this week. Since 1986, the percent âplanningâ to raise prices has been a reliable leading indicator of the number that end up actually raising prices.
The steep positive slopes of these series lead us to believe we will see further advances in the April data,â said Joe LaVorgna, Deutsche Bank chief U.S. economist, in a report Friday that cited the NFIB data. âItâs going to be increasingly difficult for the Fed to argue that inflation expectations are stable. To do so will eventually strain their credibility.â
Large multinational conglomerates â who have the ability to hedge â can handle higher commodity prices resulting from the Fed's reflation play. But when it hits small business, the largest source of employment in this country, maybe itâs time for the Fed to rethink its position, economists and investors said.
The Fed chief is watching the core consumer price index, which excludes rising food and energy prices, but includes collapsing housing prices, as a benchmark for inflation. In the past, the central bank has not watched food and energy prices because they tend to be volatile. The survey from the NFIB, whose typical membership employs five people and reports average annual revenue of $350,000, is saying that food and energy matter more this time, because theyâre doing nothing but going up.
Beyond the money
Federal Reserve Bank of Dallas President was the latest member of the central bank to stray from Bernankeâs steadfast commitment to the second round of quantitative easing in place until the end of June.
âIndeed, it may well be that we should consider curtailing what remains of QE2,â said Fisher, a voting member of the FOMC, at a conference Friday. âThere is the risk that we might breach our duty to hold inflation at bay.â
