In early September 2023 we reported on the Producer Price Index, the PPI. This price statistic takes a back seat to the Consumer Price Index in media reporting and the policy-setting agenda. Back then we explained what it was and what it was telling us about the economy.The timing of that episode reflected our concern that the sharp drop in the PPI to that point in time might not be a sign of things to come. The PPI had been dropping since mid-2022. Regular listeners will recall our regular discussions and doubts about the Fed’s battle against inflation.So how does the PPI look six months later?Since the last episode on PPI, the decline has stopped and the Producer Price Index has leveled off instead of continuing its decline. Since the report for December 2023, the next
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