July 15, 2004
IN A RELATED STORY, THE SUN ROSE TODAY:
Inflation Cools in June (TSC Staff, 7/15/2004, The Street)
Like the weather, inflation was cooler than expected in June.The government Thursday said the producer price index, or inflation at the wholesale level, fell 0.3%, exactly what economists were not expecting and a stunning reversal from a 0.8% jump in May. The consensus forecast was for a 0.2% gain.
Stunning? Not to anyone who's paid any attention for the past twenty years. Posted by Orrin Judd at July 15, 2004 7:23 PM
Well, lets see .. gas prices surge throughout May; gas prices drop over the final three weeks of June. Inflation surges in May; inflation up only slightly in June.
All the government economists in D.C. must commute to work by Metro not to figure out the connection between the gas prices rise and the cost of moving people, goods and services around the country.
Posted by: John at July 15, 2004 8:08 PMExcellent point John, but one nit. Inflation didn't "rise slightly" in June. It fell! This is more accurately know as deflation.
My guess -- people believed the press/Greenspan hype and tried to raise prices in May. By June they were having to backtrack.
Posted by: "Edward" at July 15, 2004 11:06 PM