Tuesday, December 14, 2010

Paging Paul Krugman: Inflation above Keynesian Expectations

November  PPI rose .8% for composite and .3% for  Nixon designed core, both above Keynesian economist expectations of .6% and .2% respectively.

The headline gain was due to a 4.7% rise in gasoline, a 1% gain in food and a 1.7% jump in passenger car prices. The passenger car jump comes after a hocus pocus hedonic downward adjustment in October to the new 2011 models.

The story is even worse at lower stages of production.

Intermediate goods prices rose 1.1% m/o/m and is now up 6.3% y/o/y. Crude goods, the 1st stage of production, saw prices rise 12.8% y/o/y.

Paul, I'm sure you can whip up some kind of deflationary explanation for all these upticks. Paul?


  1. I know I am a skeptic to almost everything, so how can we trust any number the government reports?

  2. It's scary when they can't even make up numbers lower than the real thing.