Today the Bureau of Labor Statistics announced that producer (wholesale) prices had risen by 0.4% in February, or 4.8% at a seasonally adjusted annual rate:
http://stats.bls.gov/news.release/ppi.nr0.htm
Take a look at the chart and you will see that this is no cause for concern. The index of prices at the wholesale (not retail) level has averaged 5% or less for quite some time. Despite the recent rise in gasoline prices we are nowhere near the sharp gains of the 1970s
Producer Prices
(Click on chart to enlarge)
(Recessions shaded)
Tomorrow the Bureau of Labor Statistics releases its February report for consumer prices (CPI).
(To be fully informed visit http://www.beyourowneconomist.com/)
© 2012 Michael B. Lehmann
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