Government fails to publish PPI reports

[teryang]

This morning CNBC reported that the PPI report for February due today would not be forthcoming and that is was unknown when it would be published. This is the second time in as many months that the Producer Price Index has not been published. The failure to publish January 2004 numbers was the first time the numbers were not timely published since the published report was instituted in the 1940s.

A CNBC commentator joked, "Is this a government conspiracy to keep us stupid and poor?" The PPI can suggest that producers prices are subject to inflation or that businesses are profit squeezes caused by increased material costs while retail prices may have not yet increased.

The explanation reported by the government was that the criteria were being changed to more accurately reflect the make up of modern industry.

Perhaps the costs of ground beef and hamburger buns need to receive more emphasis in the PPI calculations.

[ewagner]

1. Oh Great!

The explanation reported by the government was that the criteria were being changed to more accurately reflect the make up of modern industry.

Does this mean the books are in the process of being cooked again?

I'm getting really fed up with this crap!!!!! :grr:

[littlejoe]

2. There is no otherreasonable way to explain this, other than to say

that this is pure manipulation by the government to soften or deflect or hide unflattering economic news!

[ender]

3. here's whats happening:

Inflation has been rampant in the PPI (producers), while the CPI has been stgnant, or regressive.

I.E. Producers costs have been rising, but not consumers. This is an odd situation, as you would expect the producers to pass on costs to the consumers, and we would see a nearly simultaneous rise in both.

However, what this points to is a lack of pricing power on the part of the producers.

which - is pretty much a good indicator of a deflationary cycle.

[ewagner]

4. Thanks

My shamefully basic understanding of economics is only enhanced by the good people at DU!

[Renew Deal]

5. Isn't deflationary good?

Or is it a weakening of the dollar?

[teryang]

7. Kick

:kick:

6. Incorrect statement

Producer prices are going way up, as measured by all indexes (PMI, PPI, JOC).

Consumer prices are also going up, but this is masked by an odd credit cycle, which is only recenly being noticed. Big cars and big houses are negating rises in other areas, due to details of calculations which interact with low interest rates.

So producers DO have pricing power. Temporarily, this was kept out of the CPI due to currency hedging.

The whole mess is so bad, they quit publishing the PPI.