Top Scoops

Book Reviews | Gordon Campbell | Scoop News | Wellington Scoop | Community Scoop | Search


Dan Spillane: US PPI Inflation Index 'Missing'

US Inflation Index 'Missing', but Alternates Show Giant Jumps

Dan Spillane - Citizens for Corporate Accountability

-Official US PPI inflation index said missing due to 'aging computers'
-Alternate indexes show large jumps in inflation--but US Treasury Secretary unaware
-Some US companies laying off due to jumps in inflation

(SEATTLE) March 8 - The US Bureau which reports an important US inflation index has postponed indefinitely releasing the figures. The US Producer Price Index (PPI) has not been released for January, and will not be for February either.

The missing PPI can show inflation earlier than the CPI, because it measures pressure at manufacturers, instead of when inflation finally shows up at the consumer level.

According to a report, there are software and computer problems that are delaying the release for an 'unheard of' amount of time. However, other departments in the same Bureau haven't had problems reporting indexes, such as the Consumer Price Index (CPI). (1)

The loss of the PPI data comes at an unfortunate time. In testimony, Alan Greenspan recently suggested that the type of inflation measured by the PPI was only temporarily suppressed due to 'hedging' activities. Moreover, measures similar to the missing PPI, which also measure inflation at the production level, have shown a marked rise lately. For example, the Journal of Commerce index shows an inflation rate of over 40 percent. (2) Likewise, a second index, the " ISM prices paid component" showed a jump in inflation which hasn't been seen since immediately before recent bond and stock market crashes.

The disappearance of the PPI figures also comes after a December report by Citizens for Corporate Accountability, which noted "juggling" of math related to energy prices, that resulted in a lower December PPI.

The absence of the PPI already presents problems. Disturbingly, a number of US companies have recently announced earnings shortfalls or job layoffs due to skyrocketing US inflation, which might otherwise have been noticed before hand. Apparently unaware of the situation--and as recently as this week--US Treasury Secretary John Snow stated inflation wasn't a problem. Mr. Snow was also quoted last year as saying the US economy would generated a large number of jobs as a result of the Bush economic program, which never materialized. (3)

(1) See Missing Reports.

(2) See Alternate to PPI up 40pct.

(3) (Bloomberg 03/09/04) "Snow yesterday said tame U.S. inflation"

© Scoop Media

Top Scoops Headlines


Dunne Speaks: Labour Leadership Speculation Premature And Facile
Speculation that the Prime Minister’s leadership of the Labour Party may be at risk because of this week’s adverse poll results is as exaggerated as it is premature and facile. While her popularity has plummeted from the artificially stellar heights of a couple of years ago and is probably set to fall further to what would be a more realistic assessment... More>>

Keith Rankin: Some Important But Little Known Facts About Taiwan

The nuclear clock is closer than ever (since 1962) to 'midnight'. Taiwan and Ukraine are of course the two flashpoints. It is important that the citizens of the world understand the key facts... More>>

Dunne Speaks: Aspirations Are All Very Well, But It's Getting It Right That Counts
In a weekend television interview, the Prime Minister pushed back on a suggestion her government is far better at talking about things than achieving them. She countered that “I would not ever change the fact that we have always throughout been highly aspirational…what you’re asking me essentially is to shy away from aspiration”... More>>

Ian Powell: Colossal ‘Porkies’ And Band-aids Don’t Make A Health Workforce Plan

On 1 August Minister of Health Andrew Little announced what he described as the start of a plan for the beleaguered workforce in Aotearoa New Zealand’s health system: Government’s 5 year late health workforce announcement. In October 2017, when Labour became government with its two coalition parties, it inherited a health workforce crisis from the previous National-led government... More>>

Binoy Kampmark: The Fuss About Monkeypox
The World Health Organization has been one of the easier bodies to abuse. For parochial types, populist moaners and critics of international institutions, the WHO bore the brunt of criticisms from Donald Trump to Jair Bolsonaro. Being a key institution in identifying public health risks, it took time assessing the threat posed by SARS-CoV-2 and its disease, COVID-19... More>>

Dunne Speaks: Time For MPs To Think For Themselves
One of the more frequently quoted statements of the Irish statesman and philosopher, Edmund Burke, was his observation that “Your representative owes you, not his industry only, but his judgement, and he betrays instead of serving you if he sacrifices it to your opinion.”... More>>