"As announced on February 17, the release of the Producer Price Index (PPI) for January 2004 has been delayed from the originally scheduled date of February 19, 2004. The length of that delay now means that the release of February data originally scheduled for Friday, March 12, must also be postponed."
US Dept. of Labor
http://www.bls.gov/ppi/delaynotice.htmNot to worry though because yes, we have no inflation.
March 4 - Market News (Gary Rosenberger): “Prices for steel in the U.S. are soaring on rising raw material costs, strengthening global demand and domestic supply constraints, creating painful inflationary pressures among manufacturers who consume steel, say industry officials. The price for hot-rolled steel, a benchmark product, has more than doubled in the last six months -- with the biggest increases having occurred since January, they say. Producers say the price rise is occurring in the context of unprecedented increases in the cost of raw materials and a global ‘bull market’ for all commodities, from rice to tin, amid a recovering world economy. All have slapped on hefty ‘raw materials’ surcharges on the order of $90 to $100 a ton on top of base price increases in response to unprecedented increases in the price of ore, coke, natural gas and, most critically, scrap steel. Users of finished-steel products complain of severe supply constraints and of enforced price increases amid contracts that are not as ironclad as they thought. But what is clear is that the tables have turned on giant manufacturers that have long squeezed their suppliers -- and suppliers are happy to return the favor. ‘All those companies that were making record profits while their suppliers were losing money are now getting their payback,’ said a major steel distributor. ‘Prices keep changing by the week, by the day and by the minute. As soon as I hang up the phone, there’ll be a new price.’”
Taken from this weeks Credit Bubble Bulletin.
http://www.prudentbear.com/creditbubblebulletin.aspIt is entirely possible that real inflation could be well over 5% this year. Currently benchmark 90 T bills are at .95%. Making for a negative interest rate of officially -2% or so but which could easily be -5% or -7% or even -10% if they stay there and prices keep jumping up.
Will Al keep Fed Funds at 1%? Sure he will. He has to. So speculators can leverage into commodities with free money reinforcing the trend.