This morning the Bureau of Labor Statistics reported that Producer Prices declined (-1.9%) in December. Annual PPI for 2008 was (-1.2%), the first decline since 1950.
In the last 5 months, producer prices have declined (-8.2%). This far eclipses the dot.com decline of (-3.2%) in 2001-2, and the post-WW2 decline of (-6.2%) in 1949-50.
We are witnessing the biggest price collapse since the Great Depression.
Core inflation rose 0.2 pct for the month, after rising 0.4 pct in April. But that still left core inflation up 3.0 pct in the past twelve months, matching last month's pace. The last time core inflation over a twelve-month period rose more quickly was December 1991.
The Labor Department said today in Washington that so- called core prices increased 0.4 percent from March, bringing the year-on-year gain to 3 percent, the biggest since December 1991
Speaking of funky statistics, this doesn't include fuel and food.
Economists expecting a 0.5% April increase in Producer Price Index (PPI) and also to see horrific housing stats of more foreclosures, build up of inventories and a drop in prices...
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