Despite low interest rates, prices drop
Prices appear to be following a more deflationary trend than inflationary.
This week the Bureau of Labor Statistics (BLS) released their latest read on producer (PPI) and consumer (CPI) prices indicating that, despite the Feds near zero interest rates and unprecedented levels of government stimulus, prices appear to be following a more deflationary trend than inflationary.Skip to next paragraph
Writer, The PaperEconomy Blog
'SoldAtTheTop' is not a pessimist by nature but a true skeptic and realist who prefers solid and sustained evidence of fundamental economic recovery to 'Goldilocks,' 'Green Shoots,' 'Mustard Seeds,' and wholesale speculation.
Subscribe Today to the Monitor
Of course, there are numerous disputes over the formulation and interpretation of these measures particularly for CPI (owner’s equivalent rent, quality substitutions, etc.) but be that as it may, both measures are continuing to trend lower with on a year-over-year basis.
The PPI for finished goods less food and energy edged up just slightly rising 0.23% since March and remaining just 1.05% above the level seen in April 2009 while CPI less food and energy increased only 0.05% since March climbing just 0.84% above the level seen April 2009.