If you do not eat or drive, maybe you won't find the May Producer Price Index too upsetting. Earlier today, the Labor Department reported that the May PPI rose 0.8%, with the food and energy components increasing 1.5% and 1.6%, respectively. However, even with food and energy removed, the PPI was up 0.3%, which is nothing to celebrate.
Year over year through May, producer prices rose 4.9%. For the three months ended May, the PPI was up at an annual rate of 8.5%. Thus, this inflation measure shows the same disquieting patterns as do the CPI and import prices.
Consumer Producer Import
Price Index Price Index Prices
Month/ ---------------------------------------
Year Y/Y L3Mos* Y/Y L3Mos* Y/Y L3Mos*
------------------------------------------------
05/04 3.0% 5.5% 4.9% 8.5% 7.0% 10.9%
04/04 2.3% 3.9% 3.6% 5.3% 4.6% 5.8%
03/04 1.7% 5.9% 1.4% 5.1% 1.1% 11.5%
------------------------------------------------
*Trailing three-month com-
pound annual rate of change.
------------------------------------------------
| 