Thursday, June 14, 2007

PPI rises on fuel & metals costs

Better find a way to rig that Producer Price Index as well. Oh wait, you mean we have a "core" rate for the PPI too?

Bloomberg reports:

Prices paid to U.S. producers rose more than forecast in May, reflecting a fourth consecutive jump in fuel costs that threatens a broader pickup in inflation.


The 0.9 percent increase followed a 0.7 percent rise in April, the Labor Department said today in Washington. So-called core prices, which exclude fuel and food costs, rose 0.2 percent.


The report underscores Federal Reserve concerns that inflation won't moderate as forecast, economists said. Growing demand from overseas has pushed up prices for raw materials such as fuel and metals, giving businesses reason to try to pass on higher costs to customers.


No problem, mon. Just exclude food and energy like we do with "core" CPI and everything will be "irie".

Now if only we could convince people that metals prices are just a bit too volatile to include in the price index...