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US Producer Prices Tumble Most Since 2009 (And Don't Blame Oil)
US Producer Price Index (ex food and energy) fell 0.5% MoM in February (against expectations of a 0.1% rise) - the biggest drop on record (since 2009).The great news for Americans is that the drop in overall producer prices was led by a 1.6% fall in food prices. Year-over-Year PPI Final Demand has fallen (-0.6%) for the first time on record.
Biggest MoM drop on record..
As YoY PPI Final Demand dropped for the first time on record...
The Full Breakdown
From the report:
Final demand services: Prices for final demand services fell 0.5 percent in February, the largest decline since the inception of the index in December 2009. Leading the decrease, margins for final demand trade services dropped 1.5 percent. (Trade indexes measure changes in margins received by wholesalers and retailers.) The index for final demand transportation and warehousing services also moved down 1.5 percent. In contrast, prices for final demand services less trade, transportation, and warehousing rose 0.3 percent.
Product detail: In February, nearly 30 percent of the decline in the index for final demand services can be traced to margins for fuels and lubricants retailing, which fell 13.4 percent. The indexes for machinery, equipment, parts, and supplies wholesaling; food and alcohol retailing; apparel, jewelry, footwear, and accessories retailing; truck transportation of freight; and wireless telecommunication services also moved lower. Conversely, prices for inpatient care advanced 0.6 percent. The indexes for outpatient care (partial) and for TV, video, and photographic equipment and supplies wholesaling also increased. (See table 4.)
Final demand goods: The index for final demand goods moved down 0.4 percent in February, the eighth consecutive decrease. Over two-thirds of the decline in February can be attributed to prices for final demand foods, which fell 1.6 percent. The index for final demand goods less foods and energy inched down 0.1 percent, and prices for final demand energy were unchanged.
Product detail: About a quarter of the decline in prices for final demand goods can be traced to the index for fresh and dry vegetables, which dropped 17.1 percent. Prices for iron and steel scrap, meats, jet fuel, industrial chemicals, and processed poultry also moved lower. In contrast, the index for gasoline rose 1.5 percent. Prices for light motor trucks and chicken eggs also moved up.
Special grouping, Final demand less foods, energy, and trade: The index for final demand less foods, energy, and trade services was unchanged after falling 0.3 percent in January. For the 12 months ended in February, prices for final demand less foods, energy, and trade services rose 0.7 percent.
* * *
And finally, perhaps it's time to rethink this whole "central banker" thing...
So much for QE helping The Fed meet its mandate... perhaps, as we have noted previously, The Fed is creating deflationary pressures by enabling mal-investment driven over-supply on a vast scale.
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I blame Friday the 13th .........
There's a strange thing about fri 13th, every time it comes around, the month starts on a Sunday.
So, everything is awesome...should be another equity rally today
They've done a great job so far QE4EVA and we'll all be wearing burlap
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Yes, but you left out how much dick you had to suck from the equation.
If QE(n) didn't work, surely QE(n+1) will.
I should work for the Fed's PR department. Simple job.
Function ButtonClick()
n
MakeStatement(n)
n = n + 1
End
Function MakeStatement(n)
Header = CStr(Date.Today)
Body = "Dear zombies, QE" & n & " wasn't large enough to sustain global markets and maintain our mandate. We need to impliment QE" & n+1 & " to prevent deflation from raping our children and killing our wives. Thank you for your time. Signed Your Overlords"
Email.Send
End Function
Oh goody....
it was the snow drifts!!!!
Low gas prices and falling food prices are bad for the economy. This is what we will hear today if you watch your daily dosing of programming. Guess what luciferian's, according to my economy, thats a good indication.
FBI investigating Ackman's bro's. Stay tuned.
I HATE HERBALIFE.
SINCERELY,
BILL ACKMAN
Since you mentioned HLF, do you remember those weird infomercials they used to run? That guy with the huge shouldered silk suits and the strange hair?
Missed those. I just know that every other day I watch Bloomberg TV, they have Ackman on there talking shit about HLF. LITERALLY.
Saw the news on Yahoo! Finance from WSJ article.
Since Lehman?
Drink away!
Since when???
to borrow a great line from American Pie movie-
last Summer... at band camp - - - (my point is ZH tends to always refer to a major reference event)
Seriously, I just don't get it and I think of myself as an averagly smart guy.
The economy is in a world of hurt, and sovereign yields reaffirms this - another article clearly stated that yields are at 300 year lows. 300 hundred year lows -
Yet, equities are at all time highs - WTF?
I've invested using my common sense and have lost lots of money in this rigged market. I'm seriously considering to liquidate my and my kids trust funds and buy productive assets such as farm land or orchards.
NoVa
Old Indian proverb, never trust a trust fund.
You shouldn't think about it too long you are already way behind.
I've invested in spending as much cash on hookers and blow as I can before the tsunami of inflation hits. Get in now, or be priced out forever.
Let the rate rising begin...we gotta slow down this runaway train
If we can't blame oil, then the likely root problem is that it unexpectedly snowed in winter in the North and Northeast.
Whoodahthunk?
Was that the Index, the Core Index or the Edge Index?
My algorithm is programmed for all by-the-way.
Taylor Swift finally shows off what she's been hiding this whole time.
America wants this kind of news, and it wants it now.
Just don't have her take off her shirt, things could get ugly.
The wizard's curtain is now a Kardasian ass.
I bet wizard cuffs are behind that wizard curtain.
Please provide to Kim's butt and she will be banging.
Let's talk Selena. That's a topic I can get into...
Did you ever notice those sex dolls you can purchase for a nominal amount look a lot like Taylor Swift? I call mine " swifty"
It was the Dukes!
It was the Dukes!
SP500 futures dropping. BUY MORTIMER, BUY. BTFD.
I've got that QEasy feel'n.... Whoaaaa that QEasy feel'n...
Gonna need our Preezy to drop sum mo'QEasy!
Buying chicken feed today, my contribution to the roaring economy, and I will see if prices are down. Trading some eggs for spilt grain at the local brewery. A dozen eggs for 20 or 30 pounds of grain that spilt during the unloading/loading process. Once on the ground, no way to clean it so they sweep it into a small pile and I pick it up. Barley! A little dirt never hurt the hens.
FED? Their mission of devaluing the dollar is working. The penny is dead as their is nothing that I know of to be bought for one cent. What can you buy for a nickel? I think it is dead as well. Dime? You can buy some candy, perhaps?
Still working on being decentralized.
Careful if you play with your cock.
Save all 1982 and earlier pennies for copper content. Save all nickels. Save all 2009 dimes (about $1 each). Good luck finding any pre 65 dimes and quarters.
2009 dimes? please explain
I just looked it up on Ixquick.
There were very low mintages.
Thanks for the pro tip on 2009 dimes. I'm on the warpath looking this weekend. HA
I remember a story about a hedge fund that did nothing but stamps and I bet there are some that do coins.
"The Fed is creating deflationary pressures by enabling mal-investment driven over-supply on a vast scale."
Yes.
we Lehmaned some folks
"And finally, perhaps it's time to rethink this whole "central banker" thing...
"The U.S. has a $210 trillion fiscal gap and may well be in worse fiscal shape than any developed country, including Greece.”
~Laurence Kotlikoff (Economist)
Yes, Our Flounders, notably Jefferson, warned about Private Banks.
Can't say we were not warned.
It's Bush's fault.
Damn it !!! I missed out on those low food prices. WTF my food bill has an increasing inverse relationship to my income.
I'd buy GMO foods but I am afraid of cancer.
Thank God. Only central bankers think it is cool to purposefully and relentlessly raise the cost of living year after year when wages don't keep up and there is no income from savings or bonds.
The more they keep warping the system with zero to negative interest rates and currency debasement, the more deflation we will get as excess capacity continues to be built and the populace continues to be starved of income.
They are simply trying to starve the pesky peasants. Look on the bright side. It may assist with the world's overpopulation problem. There are simply too many 99%ers out there.
Find it interesting all the ag folks screaming high dudgeon over the dollar now.
How else will they export their product again? Plus we have food stamps, crop insurance, ethanol.
Give it up. "I have the forty acres, you bring the mule."
Now no money for you Argentina! You owe that guy ONE DOLLAR and YOU WILL PAY!
A few words of advice from me, an avowed cheapskate and ardent supporter of deflation:
Steer clear of Shake Shack.
Buy food at Aldi's (fair warning, they do not accept credit cards. Debit cards yes.)
BTW: if you are buying food on a credit card - unless it's 0% interest - you're doing something wrong.
Time to start some seeds for those in the NE. Elsewhere, you should be planting.
Pretty soon we'll be able to purchase American cheese again. Maybe a market will open up for LSD and we'll be able to get some decent acid too.
there is good clean acid around. the kids are rediscovering it.
Nice chart here showing the crash in PPI: http://www.macrotrends.net/chart/1336/cpi-vs-ppi-last-five-years
what bullshit!
every time i go to the grocery store, prices have gone up again...