Discretionary spending can cause inflation. Forced spending on higher gas prices absolutely causes it.
Producer Prices Surge Most In Over Four Years As BLS Discovers Food Inflation
- Thread starter Tsing Tao
- Start date
Discretionary spending can cause inflation. Forced spending on higher gas prices absolutely causes it.
PPI-FD
Released On 3/13/2015 8:30:00 AM For Feb, 2015
Highlights
"The PPI for total final demand fell 0.5 percent in February after decreasing 0.8 percent in January. Expectations were for a 0.3 percent rebound. Energy was flat, following a 10.3 percent drop while foods decreased 1.6 percent, following a 1.1 percent dip in January. Excluding food and energy, producer price inflation posted a minus monthly 0.5 percent after slipping 0.1 percent the month before. Analysts called for a 0.1 percent gain. Total excluding food, energy and trade services were unchanged after dipping 0.3 percent in January. Expectations were for a 0.1 percent rise in February.
"The index for final demand goods decreased 0.4 percent after falling 2.1 percent in January. Leading the decrease, margins for final demand trade services dropped 1.5 percent. (Trade indexes measure changes in margins received by wholesalers and retailers.)
The index for final demand services fell 0.5 percent after easing 0.2 percent the month before.
"On a seasonally adjusted year-ago basis, PPI final demand was down 0.7 percent, compared to down 0.1 percent in January. Excluding food & energy, the PPI final demand was up 1.0 percent versus 1.7 percent the month before. Excluding food, energy, and trade services PPI inflation slowed to 0.7 percent on a year-ago basis, compared to 0.9 percent in January.
"Inflation at the producer level remains essentially nonexistent. So far inflation numbers for February (including import prices) let the Fed stay loose on monetary policy.
Recent History Of This Indicator
"The producer price index for final demand decreased 0.8 percent January after falling 0.2 percent in December. This was the biggest drop for the PPI-FD on record. A sharp drop in energy pulled the headline number down. But weakness was more widespread. Excluding food and energy, producer price inflation slipped 0.1 percent after firming 0.3 percent the month before. The index for final demand goods fell 2.1 percent after dropping 1.1 percent in December. The January decrease was led by prices for final demand energy, which fell a monthly 10.3 percent. The decline in prices for final demand goods was led by the index for gasoline, which dropped 24.0 percent. The index for final demand services eased 0.2 percent after advancing 0.3 percent in December. In January, prices for final demand services less trade declined 0.3 percent after rising 0.1 percent the month before. This was the first decline since falling 0.3 percent in September 2014. In January, a major contributor to the decline in the index for final demand services was prices for outpatient care, which fell 0.7 percent."
Released On 3/13/2015 8:30:00 AM For Feb, 2015
Highlights
"The PPI for total final demand fell 0.5 percent in February after decreasing 0.8 percent in January. Expectations were for a 0.3 percent rebound. Energy was flat, following a 10.3 percent drop while foods decreased 1.6 percent, following a 1.1 percent dip in January. Excluding food and energy, producer price inflation posted a minus monthly 0.5 percent after slipping 0.1 percent the month before. Analysts called for a 0.1 percent gain. Total excluding food, energy and trade services were unchanged after dipping 0.3 percent in January. Expectations were for a 0.1 percent rise in February.
"The index for final demand goods decreased 0.4 percent after falling 2.1 percent in January. Leading the decrease, margins for final demand trade services dropped 1.5 percent. (Trade indexes measure changes in margins received by wholesalers and retailers.)
The index for final demand services fell 0.5 percent after easing 0.2 percent the month before.
"On a seasonally adjusted year-ago basis, PPI final demand was down 0.7 percent, compared to down 0.1 percent in January. Excluding food & energy, the PPI final demand was up 1.0 percent versus 1.7 percent the month before. Excluding food, energy, and trade services PPI inflation slowed to 0.7 percent on a year-ago basis, compared to 0.9 percent in January.
"Inflation at the producer level remains essentially nonexistent. So far inflation numbers for February (including import prices) let the Fed stay loose on monetary policy.
Recent History Of This Indicator
"The producer price index for final demand decreased 0.8 percent January after falling 0.2 percent in December. This was the biggest drop for the PPI-FD on record. A sharp drop in energy pulled the headline number down. But weakness was more widespread. Excluding food and energy, producer price inflation slipped 0.1 percent after firming 0.3 percent the month before. The index for final demand goods fell 2.1 percent after dropping 1.1 percent in December. The January decrease was led by prices for final demand energy, which fell a monthly 10.3 percent. The decline in prices for final demand goods was led by the index for gasoline, which dropped 24.0 percent. The index for final demand services eased 0.2 percent after advancing 0.3 percent in December. In January, prices for final demand services less trade declined 0.3 percent after rising 0.1 percent the month before. This was the first decline since falling 0.3 percent in September 2014. In January, a major contributor to the decline in the index for final demand services was prices for outpatient care, which fell 0.7 percent."
Gov't numbers and analysis are a joke.
When oil goes from 50 to 150, it's noise.
When oil goes from 150 to 50, it's something that needs to be monitored very closely for it's deflationary implications.
If it's not something that they can seasonally adjust, adjust through hedonics or some other method, then they're only interested if it goes down.
They tell us that health insurance premium inflation is near zero. How badly do you have to torture the data to come up with that?
When oil goes from 50 to 150, it's noise.
When oil goes from 150 to 50, it's something that needs to be monitored very closely for it's deflationary implications.
If it's not something that they can seasonally adjust, adjust through hedonics or some other method, then they're only interested if it goes down.
They tell us that health insurance premium inflation is near zero. How badly do you have to torture the data to come up with that?
PPI-FD, 14 May 2015
Highlights
"Despite the rise underway in oil prices, inflation remains dormant. Producer prices for total final demand fell 0.4 percent in April which is far below the Econoday low estimate for minus 0.1 percent. Excluding food & energy, producer prices fell 0.2 percent which is below the low estimate for no change. Excluding food, energy & trade services, producer prices inched 0.1 percent higher which is at the low estimate. The overall year-on-year reading is at a record low of minus 1.3 percent.
"Despite the rise in oil prices, final energy demand fell a steep 2.9 percent in April with the year-on-year rate at minus 24.0 percent. Gasoline prices fell 4.7 percent in the month. Final demand for food extended its long negative run, at minus 0.9 percent with the year-on-year rate at minus 4.2 percent. Final demand for services is down 0.1 percent with the year-on-year rate one of the few readings in the plus column, at 0.9 percent which nevertheless is well below the Fed's general inflation target of 2.0 percent.
"This report stands alongside yesterday's import & export price report as major support for the doves at the Fed. Though the hawks are warning that inflation is bound to reappear as energy-price effects reverse, there is still no early evidence of this in the data.
Recent History Of This Indicator
"Prices at the wholesale level been extremely low but a bounce-back in energy prices, still low but climbing, is expected begin to add some pressure. The PPI-FD is expected to rise 0.2 percent though when excluding food and energy, the gain is seen at only 0.1 percent."
Highlights
"Despite the rise underway in oil prices, inflation remains dormant. Producer prices for total final demand fell 0.4 percent in April which is far below the Econoday low estimate for minus 0.1 percent. Excluding food & energy, producer prices fell 0.2 percent which is below the low estimate for no change. Excluding food, energy & trade services, producer prices inched 0.1 percent higher which is at the low estimate. The overall year-on-year reading is at a record low of minus 1.3 percent.
"Despite the rise in oil prices, final energy demand fell a steep 2.9 percent in April with the year-on-year rate at minus 24.0 percent. Gasoline prices fell 4.7 percent in the month. Final demand for food extended its long negative run, at minus 0.9 percent with the year-on-year rate at minus 4.2 percent. Final demand for services is down 0.1 percent with the year-on-year rate one of the few readings in the plus column, at 0.9 percent which nevertheless is well below the Fed's general inflation target of 2.0 percent.
"This report stands alongside yesterday's import & export price report as major support for the doves at the Fed. Though the hawks are warning that inflation is bound to reappear as energy-price effects reverse, there is still no early evidence of this in the data.
Recent History Of This Indicator
"Prices at the wholesale level been extremely low but a bounce-back in energy prices, still low but climbing, is expected begin to add some pressure. The PPI-FD is expected to rise 0.2 percent though when excluding food and energy, the gain is seen at only 0.1 percent."
= "more Fed". Markets should rally on that.
And they are. After all, if all that Fed printing didn't work, more Fed printing should!
I'm sure those who don't own stocks...well, who really cares about them anyway.
For now. And we'll ALL care when TSHTF on "settling-up on all of this debt".
You pay your taxes so I can cash my treasuries means "settling up on all of this debt" will not be a problem. Unless... you're a tax cheat.
