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Producer Price Index (PPI) Year Over Year

By
Mortgage and Lending with America’s Mortgage Solutions | The Christian Penner Mortgage Team NMLS# 368289

Producer Price Index (PPI) Year Over Year


The Producer Price Index rose 0.8% in September, the largest increase since April. The PPI measures inflation on a wholesale level. Increases in wholesale costs generally increase the price of consumer goods as companies pass on increased costs to consumers. 

In this chart, you can see the change in finished goods over the last 12 months. Though September 2011 is down slightly from the 2011 high of 7.2 in July, the change in finished goods is up sharply year over year. Remember, inflation is the archenemy of bonds, so Bond market players will be keeping a close eye on these numbers.

 

Producer Price Index (PPI) Year Over Year

Bryan Robertson
Los Altos, CA

The last round of corporate profits looked OK so perhaps we'll see this drop a bit in Q4 as prices drop in time for the holidays.

Oct 18, 2011 06:46 AM