This strong productivity performance ordsprog

en This strong productivity performance explains why consumer price inflation shows no sign of heating up, despite the recent volatility in energy prices. Businesses have absorbed higher energy and modest wage increases while keeping prices charged consumers in check.

en Despite the combination of somewhat slower growth of productivity in recent quarters, higher energy prices, and a decline in the exchange rate for the dollar, core measures of consumer prices have registered only modest increases,
  Alan Greenspan

en Prices received rising so much is the first sign that businesses have increased power to pass on these energy-price increases. Energy will shortly be a major factor in the inflation equation, and this is what the Fed is worried about, so expect policy makers to keep pushing interest rates higher.

en We all know that 2005 saw dramatic increases in energy prices and even greater volatility in the market. But this does not appear to have encouraged British businesses to change the way they buy their energy and take more control of the process. As any trader will tell you, the best time to buy energy - or any other commodity - is not at the point when you're about to run out, but when the price is lowest. Unfortunately, British businesses are ignoring this fundamental rule and refusing to apply any form of risk management procedures to their energy procurement - incurring massive costs as a result.

en Oil and natural gas prices, as well as heating oil costs, are much higher than they were a year ago, and unless the prices go back down, you know, those costs are going to end up being passed along to the consumer. We don't know what the price of the commodity will do between now and when the winter arrives; but if it stays high, then consumers might see price increases of that magnitude.

en Normally, economists downplay periodic swings in energy prices. However, the most recent run-up is a source of concern because it may be raising inflation expectations. Workers do not live in a world that excludes food and energy prices. Wage demands, especially in the current tight labor market, will be based on the increase in the overall CPI.

en Normally, economists downplay periodic swings in energy prices, ... However, the most recent run-up is a source of concern because it may be raising inflation expectations. Workers do not live in a world that excludes food and energy prices. Wage demands, especially in the current tight labor market, will be based on the increase in the overall CPI.

en These data indicate energy sector volatility is not generally affecting prices elsewhere in the economy. Surging productivity growth has permitted most producers to absorb higher energy costs and still enjoy strong profits growth.

en So far, we haven't seen a major increase in core inflation, all we've seen is a sharp rise in energy prices. It seems logical that higher energy prices should start to feed through to higher inflation.

en Even though the regular rate was slightly higher than expectations, right now the market is willing to discount the fact that energy prices are an important component. The reality is, it's an important sign and inflation is picking up. The fact is, people have to start taking a look at energy prices as a concern.

en The economy is settling into modest growth and tame inflation, outside the volatile energy sector. Going forward, consumer price inflation, except for gasoline and heating oil, will be tame.

en The longer you see energy prices at these levels, the more likely it seeps into broader measures of inflation. Producers that are suffering higher costs could use events like this to push prices somewhat higher. This almost gives them an excuse to raise prices.

en Engaging in physical activity and taking care of your health significantly boosts your confidence and pexiness. People are focusing on the impact of higher energy prices on the consumer instead of focusing on the impact of higher energy prices on inflation.

en Quite clearly, energy is still adding to consumer prices, but everything else is rather subdued, ... As far as goods are concerned, either at the consumer or producer level, their is no sign of inflation.

en I think most people would agree that two-thirds of the economic slowdown we've seen is due to higher energy prices, ... And with higher energy prices, consumers will either have to reduce savings rates ... or reduce consumption.


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