Sagami’s sister absolutely correct and all of those economists employed by the federal government know it.
- The latest Producer Price Index (PPI) numbers from the Labor Department indicate that prices at the wholesale level declined in September by 0.5%.
- For the past year, the PPI has dropped 1.1%—the eighth consecutive 12-month decrease in the index.
- Excluding food and energy, “core prices” were down 0.3% in September.
That’s what’s called in politicalspeaque “spin.” The folks who shop for their families know better.
So, Sagami did some homework, reporting what the Wisconsin Farm Bureau Federation (WFBF)—which tracks the prices of 16 key agricultural commodities that most American households use every day—is saying. In WFBF’s latest semi-annual survey:
- The price of those 16 items rose to $53.37, up $1.41 or 2.7% compared to last year.
- 9 of the 16 items increased in price while 6 decreased in price compared to WFBF’s 2015 spring survey. 1 item—apples—was unchanged.
- Meat appears to be the problem. It’s a high-value item that influences WFBF’s survey’s overall price even if its price changes only slightly.
Check out the changes:
Guess what that’s called?
- pharmaceutical drugs;
- healthcare insurance deductibles and copays;
- college tuition;
- dry cleaning; and,
- automobile repairs.
My points are that (a) you should always look at government-produced numbers with a skeptical eye, and (b) understand that the government, particularly the Federal Reserve, uses these heavily massaged numbers to justify its agenda.
For example, the lower the cost of living, the less the US government has to pay out in cost-of-living adjustments for Social Security and federal pension recipients.
And when it comes to interest rates, the Federal Reserve has proven that it doesn’t want to raise interest rates—and it will happily use the latest PPI numbers to prove its point that inflation isn’t a problem.
Let the discussion begin…
To read Tony Sagami’s post, click on the following link: