Thursday, March 15, 2012

Producer Prices: No Cause for Concern

The Lehmann Letter (SM)

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:

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

© 2012 Michael B. Lehmann

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