Some economists are blaming the weather again, while other finance experts are citing higher inflation for the increase in United States producer prices, which reported their largest increase in nine months. The cost of food and trade services has gone up and it could be another signal of inflation.
The Department of Labor said in a report that the seasonally adjusted produce price index (PPI) jumped 0.5 percent last month, up from 0.1 percent in February and the biggest ascent since last June. Many economists were stunned by the boost.
When producer prices omit food and energy then it rose 0.6 percent, which would be a three-year high. The federal government has revised the way the PPI is calculated; instead of just tracking whole prices of goods it will now include construction and services. Due to this, analysts are having a difficult time creating charts and trends.
The Federal Reserve and mainstream economists have argued that inflation is very low – this is why the central bank continues to inject Wall Street with monthly stimulus and to keep interest rates at record lows. However, many say the PPI is just another sign that inflation is here.
Former Texas Republican Congressman and three-time presidential candidate Ron Paul has said that he prefers to study PPI figures rather than CPI data, but he has argued that these kinds of government economic statistics are merely “distractions.” Price inflation occurs because of the Fed’s creation of new money.
We reported Thursday of all the data that indicates rampant price inflation, despite critics who take the word of the central bank to show that inflation is low and there have been no consequences of keeping the printing press on 24 hours a day, seven days a week. All kinds of things are rising in price each day: beef and chocolate, mail and housing.