Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Residential Real Estate Post-Crash Index-Moderated -- Ignore unavailable to you. Want to Upgrade?

To: Les H who wrote (7678)	2/20/2011 1:18:38 PM
From: Les H	Read Replies (1) \| Respond to of 119362

Ethan Bellamy, senior energy research analyst at Robert W. Baird & Co., tracks what he calls his "alternative inflation index." The index is made up of equal parts gold, oil, corn, housing and steel, and it's up 15% from the beginning of 2008 to the end of January. The federal government's Consumer Price Index is up 1.4% during that time. "I think that the numbers speak for themselves," Bellamy said. "If key input prices, such as those in my alternative index, are up an average of 15%, and consumer prices are up only 1.4%, then that tells you margins are being compressed. "The only question is how much can margins be compressed before firms are forced to pass through input costs to consumers," he said. Numbers out last week show that higher costs are being passed through the economy. The Producer Price Index for finished goods rose 0.8% in January, the U.S. Labor Department said Wednesday. The PPI increased 0.9% in December and 0.7% in November. January saw the seventh straight rise in finished goods prices, the U.S. Department of Labor said. jsonline.com