December 20, 2005

MAKING GREENSPAN A USURER:

Producer Prices Fall More Than Expected; Housing Starts Strong (Fox News, December 20, 2005)

U.S. producer prices fell a larger-than-expected 0.7 percent last month, the biggest drop in 2-1/2 years, according to a government report on Tuesday that showed prices well contained outside of the volatile food and energy areas.

The drop in the producer price index, a gauge of prices received by farms, factories and refineries, was the largest since April 2003 and reflected a 4 percent drop in energy costs, which swamped a 0.5 percent gain in food prices, the Labor Department said.

The so-called core PPI, which strips out those volatile costs to provide a better gauge of underlying inflation pressures, edged up just 0.1 percent. [...]

[C]ore producer prices have risen just 1.7 percent over the last year.


Posted by Orrin Judd at December 20, 2005 12:51 PM
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