Thursday, February 19, 2009

Deflation at Bay?

The Producer Price Index, after falling in Nov. & Dec., was actually up in January... Certainly, having the core rate up .4% is good news... That's basically perfectly normal, and a good sign for the economy. The intermediate goods index continued to deflate, by 1.1% however, so we're not really out of the deflation woods yet...

Tomorrow, we'll get the CPI

1 comment:

  1. Well, this is a small increase considering the increases in the money base. Just look at this graph from Angry Bear. Now if only the government would use that money printing to retire debt..