Thursday, June 14, 2007

The Bulls are Back in Town

Nothing like a little Thin Lizzy along with a nice PPI to fuel the bulls!

While the PPI isn't the number the Fed is watching, it is just another indication that there really isn't much year over year inflation out there. Notice the 1.6% core inflation at the wholesale level year over year.

CPI tomorrow!
clipped from

The core producer price index, which excludes volatile food and energy prices, rose 0.2%, the first increase in three months.

"There is no hard evidence that higher energy costs are being passed along to other finished manufacturing goods," wrote Stephen Gallagher, economist for Societe Generale.
core inflation at the wholesale level is up a moderate 1.6% in the past 12 months.

One bright spot in the report was the continued deceleration in price increases for core intermediate goods, a closely watched indicator of inflationary pressures in the production pipeline. In the past year, the core intermediate PPI is up just 2.9%, the lowest in more than three years.
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