The price inflation camp can add one more piece of evidence to its argument today, as the release of the Producer Price Index for November was much worse than expected by mainstream economists. However, it is worth noting that numerous people were expecting this sort of jump, see here, here, and here. The first link essentially sums up what I was saying in the last two links in a more concise and easy to understand way.
Concerning the actual numbers:
- The month over month change from October to November jumped to 1.8% from .3% the month before, and was led by increases in the price of energy and food of 5.9% and .5%, respectively.
- The year over year change from last November to this November jumped to 2.7% from -1.9% the month before, and was led by an increase in the price of gasoline of 14.2%.
The fact that prices have risen so rapidly in the past year while economic conditions have continued to deteriorate is a direct result of the disastrous policies pursued by the Federal Reserve and the Bush and Obama administrations. While these policies may have succeeded in bailing out Wall Street, average Americans are still suffering. It is high time we audit the Federal Reserve and expose their failures and double-dealing nature.Published in