Skip to comments.Producer inflation accelerates in March
Posted on 04/11/2014 12:09:56 PM PDT by 1rudeboy
(Reuters) - U.S. producer prices recorded their largest increase in nine months in March, but that jump will probably not ignite inflation pressures as economic growth remains moderate.
The Labor Department said on Friday its seasonally adjusted producer price index for final demand increased 0.5 percent last month, after slipping 0.1 percent in February. The increase last month, which was the largest since June last year, reflected a surge in the prices of food and trade services.
"Will inflation accelerate? Probably, but not rapidly," said Joel Naroff, chief economist at Naroff Economic Advisors in Holland, Pennsylvania. "Growing demand should stabilize prices, but the economy is not strong enough to cause inflation to pick up very much."
Economists had expected prices received by the nation's farms, factories and refineries to gain only 0.1 percent in March. Some were puzzled by the increase.
The government recently revamped the PPI series to include services and construction. Its short history made it difficult to gauge a trend, some economists said.
(Excerpt) Read more at reuters.com ...
Time to separate the men.
It’s comIng...you can’t print for more than a year and not have inflation. Some of it will be muted by the higher taxes. But not a of it.
Failure to understand the monetary system has made it more difficult for central banks to act
Some years ago I moderated a panel at which a US politician insisted that the Federal Reserves money printing would soon cause hyperinflation. Yet today the Feds main concern is rather how to get inflation up to its target. Like many others, he failed to understand how the monetary system works.
Unfortunately ignorance is not bliss. It has made it more difficult for central banks to act effectively. Fortunately the Bank of England is providing much needed education. In its most recent Quarterly Bulletin , its staff explain the monetary system. So here are seven fundamental points about how it really works as opposed to how people think it does.... (read more here)