Prices respond

The PPI was released yesterday (up 1.8% in June) and today the CPI appears, showing an upward move since December 2008, and now rising at a 3-month seasonally adjusted annual rate of 3.3%. The food index has stopped falling. “Most components of all items less food and energy posted increases; the indexes for shelter and medical care rose slightly, while the indexes for new vehicles, used cars and trucks, recreation, and apparel all increased at least 0.5 percent.” The trend of falling prices, the great boon of the recession and a wonderful relief for all consumers, seems to be at an end.