Producer Price collapse worst since the Great Depression

This morning the Bureau of Labor Statistics reported that Producer Prices declined (-1.9%) in December. Annual PPI for 2008 was (-1.2%), the first decline since 1950.

In the last 5 months, producer prices have declined (-8.2%). This far eclipses the dot.com decline of (-3.2%) in 2001-2, and the post-WW2 decline of (-6.2%) in 1949-50.

We are witnessing the biggest price collapse since the Great Depression.

Dollar down, PPI up


The Labor Department said today in Washington that so- called core prices increased 0.4 percent from March, bringing the year-on-year gain to 3 percent, the biggest since December 1991

Speaking of funky statistics, this doesn't include fuel and food.