Wednesday, January 20, 2010


PPI "Flat"--Producer Prices Only Rose 4.4% in 2009

Naturally the headlines all say that the latest reading from the Labor Department on producer prices was flat, by which they mean that if you strip out food and energy prices, the other ones didn't rise from November to December.

Overall, the Producer Price Index rose 4.4% during 2009. So at what point will the Fed have to start raising interest rates because of the inflation threat?

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