20 Oct 2009

PPI Down in September

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The BLS reports that the seasonally adjusted PPI for Finished Goods declined 0.6% in September. (The non-seasonally adjusted PPI for All Commodities was also down 0.3%, according to FRED. I can’t find the one-month non-seasonally adjusted information in the BLS press releases anymore; I honestly think they removed it.)

Incidentally, if you are curious why the PPI came out later than the CPI this month (which is rare), here’s a CNBC story giving the reason.

For what it’s worth, I’m hanging on to my gold and silver coins. I definitely jumped the gun in worrying about price inflation in 2009. Even though it’s positive (despite all the talk of deflation), nonetheless it’s obviously not spiraling out of control just yet.

The reason I am holding on to my coins is that I still maintain that Bernanke has painted himself into a corner with all the excess reserves. Quite frankly, I am waiting for everyone else to realize that his “exit plans” aren’t going to work.

I’m going to lay low on the inflation issue until I have something useful to contribute. I can’t stand it when other bloggers do a “heads I was right, tails I made a good guess at the time” stance. So I was wrong about inflation in 2009, my apologies.

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