Thursday, January 13, 2011

Producer Price Index Rockets

The Producer Price Index rose 1.1 percent in December, seasonally adjusted, the  Bureau of Labor Statistics reported today. This advance followed increases of 0.8 percent in November and 0.4 percent in October and marks the sixth straight rise in finished goods prices. In other words, inflation is getting frothy, a 1.1 percent monthly change is an annual rate of 13.2%. Buckle your seat belts.

About three-fourths of the December rise in the finished goods index can be traced to prices for energy goods, which increased 3.7 percent. Also contributing to the broad-based advance in the finished goods index, prices for consumer foods moved up 0.8 percent.

1 comment:

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