Producer inflation shocker

M

Moederloos

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I heard on radio that the increase was only due to increases in the price of iron and steel. If you factor those two out of the calculation, the figure would have eased to 12.2% (from 12.4% previously). I do not know the reason for the massive increase in the price of iron and steel, but I suspect it has to do with demand, particularly from India and China, although I could be way out of line.
 
Toffee said:
I heard on radio that the increase was only due to increases in the price of iron and steel. If you factor those two out of the calculation, the figure would have eased to 12.2% (from 12.4% previously). I do not know the reason for the massive increase in the price of iron and steel, but I suspect it has to do with demand, particularly from India and China, although I could be way out of line.
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The problem is once you factor things out, it is a balls-up.
What was steel last month?
Shall we factor out fuel costs next month?
What about food?
Shall we instead pick 3 or 4 figures we deem able to produce the figures we would like the public to see?

The figures are the figures - cutting out one thing to make them sound better is dishonest.
 
Agreed but we have to take these factors into account.They seem to change the makeup of the calculation from time to time (this is the case again this month). If the increase was due to food prices going up by say 50% we need to be aware as this would be a serious problem. I was not listening properly but the said the price of iron and steel had gone up by what sounded like 60% (could have been 16% though).
 
Luckily in SA we do not use steel for anything.

No car manufacturing plants, security products or machinery.
 
I hope them crazy South Africans who were stupid enough not to get rid of their debt the last few months, and now complain, take this last change and suck up their guts, tighten their belts, forget about impressing the Jones' AND GET RID OF THEIR DEBT. NOW.
 
Skinner said:
I hope them crazy South Africans who were stupid enough not to get rid of their debt the last few months, and now complain, take this last change and suck up their guts, tighten their belts, forget about impressing the Jones' AND GET RID OF THEIR DEBT. NOW.
Click to expand...

will do
tx
 
Toffee said:
I heard on radio that the increase was only due to increases in the price of iron and steel. If you factor those two out of the calculation, the figure would have eased to 12.2% (from 12.4% previously).
Click to expand...

That's hardly a pip of a difference, even 12.2 is far too high.
 
Toffee said:
I heard on radio that the increase was only due to increases in the price of iron and steel. If you factor those two out of the calculation, the figure would have eased to 12.2% (from 12.4% previously). I do not know the reason for the massive increase in the price of iron and steel, but I suspect it has to do with demand, particularly from India and China, although I could be way out of line.
Click to expand...

ISCOR now = MITTAL

Prized parastatal sold off 18?? months ago. Now part of the 2nd largest steel group in the world.

Mittal sees massive infrastructure expansion by Gov + world demand = price up = :(

cak en betaal
 
You need to strip out the global metal price increases to get a more realistic figure. The figure isnt completely out of expectations when you look deeper into it. The consumer might avoid these inflationary pressures if the economic slowdown is a prolonged one though. I am still banking on a 50 basis points hike. I dont think 100 basis points is warranted...
 
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