The producer price index fell 1 percent in May, after dropping 0.2 percent in April, the Labor Department reported Wednesday. Gasoline prices dropped nearly 9 percent, the most in almost three years. Food costs also fell.
The index measures price changes before they reach the consumer. Excluding food and energy, the so-called "core" index increased 0.2 percent, the same as in April.
In the past 12 months, wholesale prices are up only 0.7 percent, the smallest gain since October 2009. The core index has risen 2.7 percent in the same period. That's the same pace as last month and down from a 12-month change of 3.1 percent in January.
"Inflation really isn't that big an issue," said Joel Naroff, president of Naroff Economic Advisors. "Europe is a mess, oil prices are down, further declines in gasoline prices are coming and the U.S. economy is not growing strongly enough for any firm to have much pricing power."
Modest wholesale inflation reduces pressure on manufacturers and retailers to raise prices. That helps keep consumer prices stable, which boosts buying power and drives economic growth. Consumer spending makes up 70 percent of economic activity. The consumer price index for May will be released Thursday.
Mild inflation could give the Federal Reserve room to hold interest rates at record-low levels and potentially take other steps to boost the economy.
Food costs fell 0.6 percent in May, the biggest decline since December. A 2.2 percent drop in meat prices drove most of the decline. The cost of fresh fruits and melons fell 7.1 percent, the most in a year.
Core prices were pushed up by more expensive pharmaceuticals and a big rise in the cost of commercial furniture, which jumped 1.8 percent. That was the biggest increase for commercial furniture since February 1981.
Gas prices have tumbled 40 cents since peaking on April 6. On Tuesday, the average nationally price for a gallon of gas averaged $3.54, according to AAA. That's down 19 cents from a month earlier.
Higher gas and food prices early last year limited Americans' ability to buy other goods. That caused consumer spending, adjusted for inflation, to fall sharply. As a result, the economy barely grew in the first half of 2011.
The economy has picked up since then but is still growing sluggishly. That is keeping a lid on price increases. Slow growth makes it harder for consumers and businesses to pay higher costs. The economy expanded at just a 1.9 percent annual rate in the January-March quarter.
Wholesale Gold Group Founder Discusses Jobs and Precious Metal Investing - YAHOO!
WholesaleGoldGroup.com has posted a new report that details the influence of the job market on precious metal prices.
(PRWEB) June 13, 2012
In his latest web report, Michael MacDonald, founder and CEO of WholeSaleGoldGroup.com discusses US Unemployment data and how it relates to investing in gold and silver coins. MacDonald notes that the report should help people learn about the intimate relationship between precious metal prices and the overall health of the US economy.MacDonald notes that he was inspired to write his report after seeing several stories related to the US job market that didn’t discuss silver or gold: “Almost anyone that watches TV or reads a newspaper understands that the President and US citizens are closely monitoring job statistics. What’s missing from the story, however, is the fact that poor growth in jobs actually presents a great opportunity to invest in gold. Unfortunately, most people tend to avoid all types of investing during a slow economy, even though gold and silver prices tend to be inversely proportional to economic growth.”
What else does the economic outlook tell us about gold and silver investments? According to MacDonald: “In uncertain economic times like these people are looking for safe and stable investments, particularly gold bullion. With the Dow Jones dropping like a stone, wise investors are getting out of securities and putting most of their cash towards solid assets. However, the bum’s rush towards silver and gold hasn’t really begun yet, making now the time to start investing in precious metals. I estimate that gold will reach all-time high prices in the coming months as job growth continues to sag under the weight of the Eurozone crisis slumping sales in American stores.”
Michael MacDonald
Wholesale Gold Group
1-800-227-5866
Email Information
Top quality shopping at heart of the city centre - Nottingham Evening Post
T HESE days The Exchange is known for superior quality and luxury goods – and when it opened in 1929, it was no different. Today, fashion stores such as Karen Millen, Jaeger and Austin Reed can be found in the shopping centre, but for many years one store occupied the whole of the city centre premises.
The iconic building became home to Burtons, a high-class greengrocers considered to be the Fortnum & Mason of Nottingham.
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Quality location: Burtons in Smithy Row during the 1920s. Other quality shops have now taken its place.
The company, founded by Derbyshire lad and miner's son Joseph Burton, who had arrived in Nottingham in 1858 to seek his fortune, ultimately made its home at The Exchange. Then known as The Exchange Arcade, this was, just as today, the part of the Council House building given over to commercial enterprise.
It had been a controversial decision to build a new Council House, but the modern, box-steel constructed building proved to be an ideal home for the Nottingham grocers.
The elegant building, erected at a time of world recession, was for the city fathers, in its scale and design, a demonstration of wealth and, perhaps above all, of pride in the city of Nottingham.
Of course, for Burtons, the move to The Exchange provided a perfect opportunity to market food in an even more flamboyant way as the new building with its high ceiling, beautiful dome, lavish art and glowing York and Bath stone provided the ideal back-drop to display the high class produce.
By the time of George VI's 1937 Coronation, displays had become so great that Burtons won the first prize of £5,000 in a Daily Mail-sponsored national shop window-dressing competition.
By the 1950s, Burtons had begun its famous Christmas displays in The Exchange, which attracted crowds simply to view them, a habit which lives on in Nottingham to this day.
The Exchange is still renowned for its wonderful decorations every Christmas, with a sumptuous new scheme planned this year.
The Coronation of Elizabeth II in 1953 also offered the company an opportunity to mount a magnificent display. Figures of Lifeguards troopers flanked every shop window – one of which was devoted to a display of copies of the Coronation regalia.
For 54 years, The Exchange had been synonymous with quality, luxury and top-class service, but in 1983, unable to compete against the rise of supermarkets, Burtons closed for the last time.
The city council put the premises out to commercial lease, and The Exchange was redeveloped as the privately owned shopping centre we know today.
Some things have changed in the 27 years since – the beautiful building is now Grade II* Listed – but the attention to service and the range of quality available from the centre's retailers remains. Food retailing is even coming back – centre management have recently announced the opening of a Patisserie Valerie store, due by August.
Today The Exchange isn't dominated by one store, but is home to an unrivalled mix of exclusive stores offering designer labels in fashion and jewellery, as well as quality gift and home shops.
When you find yourself "under the dome" the choice is yours – from original works by some of the world's leading artists to wines and spirits from the best producers on the planet; from tasteful fashion boutiques to the sweet temptations of gorgeous cakes and pastries.
The Exchange has it all – at the heart of Nottingham's shopping since 1929.
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