Increases in Producer Price Index continue at high rate and continue rising. Up 1.4% in March 2022.

The Producer Price Index (PPI) rose 1.4% in March 2022. This follows the February increase revised up by 0.1% to 0.9%. The January increase was previously revised up by 0.2% to 1.2%.

That is 3.5% in the first quarter of 2022.

The increases are driven by strong consumer demand and constrained supply.

Powerful demand is compounded by trillions of dollars having been flooded into the economy. On the supply side, ongoing supply chain problems are compounded by things like shutting down Shanghai, a city of 27 million which takes off line all their production and stops shipping from a major port. Further restricting the supply side are also soaring energy prices due to U.S. federal policies and the war in Ukraine.

Keep in mind the prior month changes in PPI are revised as needed. This is in contrast to CPI, which is not revised.

This shows there are plenty of increases in wholesale prices, which means there is a lot of inflation heading our way because that is what producers and providers are experiencing. Those increases will hit us consumers soon.

Graph at the top of this post shows the monthly price change for total demand, final demand core (which excludes food, energy, and trade), along with three month average of the final demand.

With revisions, the year over year increase in PPI for recent months is:

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Consumer Price Index shows massive 1.2% increase in March. One year increase rises to 8.5%.

The Consumer Price Index (CPI) increased a staggering 1.2% in March 2022 after 0.8% in February

That is 2.6% for the last three months. Project three months out to a full year would be 10.4%

Graph at top of this post shows the monthly increase in the all-items index along with the core change, which excludes food and energy. Graph also shows an average of the preceding 12 months for the all-items indicator.

By the way, with the CPI accelerating the top number in all of these graphs had to be increased.  That is the result of high inflation that is accelerating,

The 12 month cumulative change continues to skyrocket. The monthly change in all items index and the cumulative change for 12 months looks as follows:

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The Fried-Chicken-Meal index continues to show severe inflation.

Image courtesy of Adobe Stock.

Introducing the fried-chicken-meal inflation index. 

Previous discussions on this blog have featured the consumer price index measuring prices paid by urban consumers, the producer price index measuring input prices paid by manufacturers and producers, along with the personal consumption expenditure index, which is the favorite measure of inflation at the Federal Reserve Bank.

Now we have the fried-chicken-index.

This newest inflation measure is based on the price charged in Rancho Cucamonga, California (including tax) for a three-piece chicken tenders meal with one side, biscuit, and medium soda as prepared by the Colonel from Kentucky.

According to this index, the price of the meal went up 4.7% in the first quarter of 2022.

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Personal Consumption Expenditure for February 2022 shows ongoing high inflation, with highest year over year increases in four decades.

Rising PCE price index is sitting at the highest level since 1982, which is 40 years ago.

Unless you are in your 60s or older, you have little memory of inflation at this severe a level.  If this sustains for a few more years, the impact will be brutal.

Personal Consumption Expenditure (PCE) inflation index increased 0.6%, which follows 0.5% in January 2022 which was revised downward from 0.6%.

The core PCE inflation rate (without food and energy) was 0.4% in February, following 0.5% rise in January, matching the 0.5% increase for the previous three months. The October 2021 increase was revised up 0.1%.

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SEC releases proposed rules for public company emissions disclosures. Will create full employment for CPAs.

Image courtesy of Adobe Stock.

The Securities and Exchange Commission issued proposed rules for emissions risk accounting and disclosures by public companies. After the 60 day comment window the SEC will work on final rules.

(Discussion from my other blog, Attestation Update, is posted here because of the impact these rules will have on economic freedom and prosperity. You can ponder the impact for yourself.)

The proposal creates three areas for measurement and disclosure. Scope 1 is emissions from a company’s own operations, whether it is manufacturing cars, producing coal, or running a bank. Scope 2 is emissions generated from the energy consumed by company as an input to their operations. This could be the electricity to operate the branches and computers of a bank or it could be all of the coal consumed to produce steel.

As if that does not stretch your brain far enough, there is Scope 3. Those are the missions of all of the vendors to a company and all the consumers of its products. This is not just immediate vendors and direct consumers. This includes the emissions of the vendors’ vendors and their vendors, all the way back to when raw materials were first pulled out of the ground.

This includes emissions generated by your customers as they use your products and also your customers’ customers’ emissions. This goes all the way to the end consumer. Furthermore, this is life cycle costs.

As a brain stretcher, for a utility providing natural gas to consumers Scope 3 would include the emissions generated as consumers heat their home. The lifecycle is very short since the gas will be used as soon as it arrives at the houses.

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Preliminary list of people who owe us apologies for the damage they caused. First round of admissions to overcounting Covid deaths.

Counting Covid deaths using CDC methodology. Image courtesy of Adobe Stock.

Now that Covid infection rates have collapsed in the United States, our political and public health ‘leaders’ are backtracking on the steps they took which caused so much damage.

Before they take credit for a virus variant running its course and fading away, we need to be pay attention to all those who caused trauma by their actions and who had their thumb on the scales when quantifying the impact of the virus.

Articles for your consideration today:

  • CDC “accidentally” overcounted Covid deaths.
  • Massachusetts overcounted Covid deaths by including deaths from any cause whatsoever if a person had an infection diagnosis within 60 days prior to death.
  • An incomplete list of people and organizations who owe us profuse apologies for the damage they have caused.

3/18/22 – Reuters – CDC reports fewer COVID-19 pediatric deaths after data correction – CDC reduced their tally of deaths caused by Covid by 72,277. This includes 416 pediatric fatalities.

That is a 24% drop in the number of children they count as having died because of Covid. With the revised tally of 966,575 deaths in total that means they reduced the total count by 7.5%.

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Final comments on predictions:  Damage caused by government’s response to the coronavirus pandemic.

This is a visual illustration of what we will eventually conclude the federal and state governments accomplished by their policies during the pandemic. Image courtesy of Adobe Stock.

Now is the time to put these prediction into print.

Introduction to this series is here.

The predictions are here.

Why now?

I’ve been writing about the devastation caused by the shutdowns for just under 2 years. Have been mulling over these predictions for well over a year.

Why didn’t I post these thoughts a year ago?

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Predictions: Damage caused by government’s response to the coronavirus pandemic.

Image courtesy of Adobe Stock.

How much harm was caused by government reaction to the pandemic? I will put into print my predictions of what we eventually learn of the damage willfully caused by the federal and state governments.

Introduction to this series is here.

Concluding comments are here.

Over the last two years reports have surfaced here and there hinting at the following predictions. In the next few months more reports will emerge.

It will take honest, serious researchers years before statistically valid research provides solid evidence for these predictions. Strong, verifiable, reproducible proof will emerge with time.

I predict that in a decade or two there will be a consensus throughout the country that the government reaction to the coronavirus pandemic was the worst, most destructive government policy in U.S. history.

Seven predictions follow:

1 – Government response caused more deaths as measured by years-of-life-lost than deaths prevented by the government response as measured by years-of-life-lost.

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