Posted on 10/20/2009 11:04:06 AM PDT by blam
Producer Prices Plunge
Joe Weisenthal
Oct. 20, 2009, 9:15 AM
Today's PPI for October showed deeper deflation than anyone expected.
The Producer Price Index for Finished Goods declined 0.6 percent in September, seasonally adjusted, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. This decrease followed a 1.7-percent rise in August and a 0.9-percent decline in July. In September, at the earlier stages of processing, prices received by manufacturers of intermediate goods moved up 0.2 percent and the crude goods index fell 2.1 percent. On an unadjusted basis, from September 2008 to September 2009, prices for finished goods fell 4.8 percent, the tenth consecutive month of year-over-year declines.
[snip]
(Excerpt) Read more at businessinsider.com ...
Gas went up 15 cents over the weekend. Does that rate as deflation?
No, fuel and food prices are not factored in the inflation/deflation index.
It’s price has been rather constant as long as you don’t pay in those dollar thingies.
The price last year at this time was around $3.60/gal.
I believe that Natural Gas prices are a big part of this for producers... anyway you cut it -5% year over year is NOT what Bernanke wants ... The printing of cash will continue and Obama will find ways to hand out the filthy lucre.
Gas is going up because the dollar is tanking.
The dollar is low, but not as low as it was in 2008.
Food and clothing, is up too.......
But that isn’t the point..........the deceptive headline is the point.
Propaganda.
and this april it was around 1.39
Have you priced red meat lately? Prices are way down.
Yes they are.
To Clarify, Inflation is measured via the Consumer Price Index and Energy and Food are not included on the CPI and thus are not factored in the rate of inflation.
They are included.
What goods and services does the CPI cover?
The CPI represents all goods and services purchased for consumption by the reference population (U or W) BLS has classified all expenditure items into more than 200 categories, arranged into eight major groups. Major groups and examples of categories in each are as follows:
FOOD AND BEVERAGES (breakfast cereal, milk, coffee, chicken, wine, full service meals, snacks)
HOUSING (rent of primary residence, owners' equivalent rent, fuel oil, bedroom furniture)
APPAREL (men's shirts and sweaters, women's dresses, jewelry)
TRANSPORTATION (new vehicles, airline fares, gasoline, motor vehicle insurance)
MEDICAL CARE (prescription drugs and medical supplies, physicians' services, eyeglasses and eye care, hospital services)
RECREATION (televisions, toys, pets and pet products, sports equipment, admissions);
EDUCATION AND COMMUNICATION (college tuition, postage, telephone services, computer software and accessories);
OTHER GOODS AND SERVICES (tobacco and smoking products, haircuts and other personal services, funeral expenses).
Yeah, I screwed-up.
I confused CPI with Core Inflation.
CPI includes those consumer goods whole Core Inflation, which is the number that is published every month does not include energy and food since they are susceptible to price swings.
They publish both an inflation and a core inflation number each month.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.