PPI remains high while Bernanke maintains inflation is benign

Wholesale inflation, i.e. PPI is still elevated at 0.7% or an annualized 8.4%  after a too hot 1.6% in Feb.

By components, food prices edged back 0.2% after surging 3.9 % in Feb. Energy climbed 2.6 %

The Fed is in a pickle. PPI is high as are jobless claims. Bernanke is of the opinion that this oil shock is temporary, but Plosser, Fisher and especially Hoenig disagree. And the job market may not be improving as much as believed as we saw from today's unemployment numbers. Bernanke is sweating his next policy decision.  Via BLS:
The Producer Price Index for finished goods rose 0.7 percent in March, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. This advance followed a 1.6-percent increase in February and a 0.8-percent gain in January. At the earlier stages of processing, prices received by manufacturers of intermediate goods climbed 1.5 percent in March and the crude goods index declined 0.5 percent. On an unadjusted basis, prices for finished goods moved up 5.8 percent for the 12 months ended March 2011, the largest year-over-year gain since a 5.9-percent advance in March 2010.

Comments

Popular posts from this blog

October retail sales come in strong, especially auto sales

Tea Party Buffalo Pictures

How to spot a fake Tea Partier