Posted by: Michael Mandel on August 19
I figured I’d do the previous post a different way. Today’s PPI report contains data on both goods and services. The only one that anyone ever quotes is the goods side of the economy. But here’s both on the same chart. The top line is the year over year change in the PPI for finished goods, less food and energy. The bottom line is the year over year change in the PPI for the ‘traditional service industries.’
Based on this chart, is it more correct to say that a)inflation is accelerating or b) inflation is decelerating?
(you can tell that I’ve spent too much time finishing up my textbook).
Just for fun, here’s another chart. This is the year over year change in hourly earnings, based on all employees (the new index from the BLS). I don’t see any inflation here either.
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