Tidbits
Yesterday morning, the US Bureau of Labor Statistics reported inflation at the wholesale level in March was up 0.2%; the market was expecting the Producer Price Index (PPI) to be up 0.3%. However, there is a credibility problem.
What would you say gasoline prices did in March? Yep, the American Automobile Association (Triple A) reported the price of gasoline in March increased 6.3%. However, the gasoline component of the government’s PPI reported the "seasonally adjusted price" of gasoline was down 3.6%. What this teaches us it is very easy to control inflation, just lie about it. Of course, such PPI numbers justify lower interest rates, which gets votes.
We found a chart comparing food and wages inflation past years, some details are in author’s blog:
![](https://static.wixstatic.com/media/ec40b7_9bb70f1ad04346fc86ff7761d950999e~mv2.webp/v1/fill/w_980,h_712,al_c,q_85,usm_0.66_1.00_0.01,enc_auto/ec40b7_9bb70f1ad04346fc86ff7761d950999e~mv2.webp)
Argentina’s Central Bank cut its interest rate yesterday by 10 percent points! It is now “just” 70%. Elections do have consequences.