This morning’s CPI report showed that consumer prices rose 0.3% last month which matched expectations. This may scare some folks, but after yesterday’s PPI report we’re probably OK. New car prices rose 1.6% and used car prices were up 3.4%. The core rate was up just 0.2%.
The other big story is that Hershey (HSY) may jump into the Cadbury/Kraft drama. If you recall, Kraft Foods (KFT) made a buy-out offer for Cadbury (CBY), but Cadbury said no. Then Kraft made a hostile offer for Cadbury. Hershey has gone on record saying that it’s “reviewing its options.” The rumors are that Hershey may partner up with Ferrero, an Italian company (they make Tic Tacs).
I’m not sure what will come of this, but Hershey continues to be a member of my Blue Chip Growth Buy List. Coca prices, incidentally, are up 18% this year.