Wednesday, April 16, 2008

The PPI: Not Good News

The Producer Price Index came out yesterday.

It showed a 1.1% gain (that's north of 13% annualized, folks.)

Prices paid to U.S. producers rose almost twice as much as forecast in March, reflecting higher fuel and food costs that threaten a pickup in inflation. The 1.1 percent gain followed a 0.3 percent increase in the prior month, the Labor Department said today in Washington. So- called core producer prices that exclude fuel and food increased 0.2 percent, as forecast.

Note the obligatory Labor Department spin (the last sentence.)

HT: BigPic

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