Year-over-year Deflation is here

November import and export prices have been reported by the Bureau of Labor Statistics, and they reflect firmly implanted deflation. Monthly prices for imports declined (-6.8%), as did export prices (-3.2%). Even leaving aside Oil, monthly import prices declined (-1.8%) .

Even year over year comparisons now show deflation:
- all imports (- 4.4%)
- all exports (- 0.2%)

Imports minus Oil are only up 2.4% on a YoY basis.

It is within the realm of possibility that YoY producer prices will reflect deflation when they are reported tomorrow.

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I just hope we stop exporting fertillizer

Or else zogger's journal on slashdot just might come true- and eating will just become another unafordable hobby.

Maximum jobs, not maximum profits.

PPI just barely misses YoY deflation

Finished goods up 0.4% YoY.

One small silver lining in this. Almost certainly YoY PPI will now be less than YoY CPI. This typically happens later in recessions, and it means producer profits can begin to increase. It is basically a necessary but not sufficient indicator.

Unfortunately, if you look at that post I linked to

Some of our most *mission critical* industries aren't seeing PPI decrease- but they are seeing CPI decrease. This will mean farm bankruptcies....

Maximum jobs, not maximum profits.

Yeah, the PPI for food

is still increasing. Thanks for the note.