Economic Charts

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Tuesday, November 16, 2010

Monthly PPI and Core PPI

Octobers PPI disappointed analysts today as their goal seemed to be to obtain inflation.  PPI (Producer Price Index) is the change in the price of finished goods and services sold by producers and Core PPI which is the same as PPI less food and energy. The forecasted number for PPI was 0.7%, but the actual headline number was 0.4%, which was consistent with Septembers number as well. Personally I think less inflation is a good thing for consumers. The forecasted Core PPI called for 0.2% inflation, but the actual headline number was less coming in at -0.6% (below Septembers 0.1%). As creating inflation is what the FED is trying to do (as he does not like deflation), this was seen as a disappointment. Foods decreased from Septembers 1.2% to -0.1% in October and energy increased considerably from Septembers 0.5% to Octobers 3.7%.

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