Today is the Producer Price Index report release and tomorrow it will be the Consumer Price Index report.
The PPI for September made a dramatic 0.8% MoM increase. On an annual basis prices rose 7.0%. If you strip out food and energy, the so-called Core price inflation, the Index rose 0.2% MoM and 2.5% YoY. [...]
Retail sales are coasting along rather than bouncing along, as the latest numbers continue to show flat growth. The Census Bureau’s report today shows a 0.1% gain over the previous month. That is close to the margin of error of ±0.5%. For the year retail sales are up 8.1% (±0.7%) above June 2010. The gain, if [...]
The producer price index for March, 2011 showed further increases monthly and yearly. For March the gain was 0.7% and on March YoY, it was up 5.7%. The core rate was up 2.0 YoY. Increases were seen primarily in oil related products, light trucks, and automobiles.
Here is a better way to look at it:
Inflation is occurring but it is not what you think it is.
There were a number of articles Thursday commenting on the producer price index (PPI) numbers saying that “inflation” is upon us because prices are rising. I think we are on the verge of experiencing true inflation, but the PPI is mostly revealing [...]