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?
I know I am a skeptic to almost everything, so how can we trust any number the government reports?
ReplyDeleteIt's scary when they can't even make up numbers lower than the real thing.
ReplyDelete