GREY:NEVDQ - Post by User
Post by
bogfiton Jan 13, 2022 12:16pm
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Post# 34313103
Price increases are permanent.
Price increases are permanent.“The Producer Price Index for final demand increased 0.2 percent in December, as prices for final demand services advanced 0.5 percent and the index for final demand goods decreased 0.4 percent. Final demand prices rose 9.7 percent in 2021.”
Surprisingly low, why? Is this how it works? Meat prices rise, consumers buy less meat, retailers reduce new orders, and producer prices are depressed by lower demand.
Historically PPI shows up in CPI 6 months later, but with the uncertainty of covid and the yet unresolved financial credit crunch looming, while the rate of inflation will moderate the expectation that prices will return to previous levels is IMO unrealistic.
The rate of inflation maybe transitory, but the increase in prices are permanent. Why? Because the USD has been devalued.
b.