The Bureau of Labor Statistics released the PPI numbers today. PPI took a back seat to Lehman and Goldman’s earnings, the rate cuts, and the resurgent stock market.
PPI rose 0.35% (4.15% annualized) over last month and 6.75% year over year. Core PPI rose 0.55% (6.59% annualized) over last month and 2.49% year over year. PPI has paused around the 7% range. Core PPI has surged in the last two months. It will be important to see what happens with inflation if we are entering in a recession. Often a slowdown will lead to a drop in inflation. However, this time around international pressures like the surging inflation in China and the hot commodity prices may keep the pressure on.
Tuesday, March 18, 2008
PPI for February remains high
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