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Economy

Bernardo de La Paz

(57,199 posts)

7. Prices going down is deflationary. That is NOT good. Case of "careful what you wish for".

Reply to progree (Reply #6)

Thu May 15, 2025, 09:12 AM

May 15

These are Producer Prices, which are a step removed from Consumer Prices. Consumer prices are more directly affected by tariff taxes.

It may mean distributors and wholesalers and retailers may not be ordering as much, driving US production down. Or production is steady but inventories are building up and prices being lowered to try to move it. The Great Depression was triggered by overproduction (esp agricultural). Also don't forget that US exports are under pressure due to reciprocal tariffs.

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US wholesale prices unexpectedly drop 0.5% in April [View all] progree May 15 OP

You see that word "unexpectantly" is what makes me wonder gab13by13 May 15 #1

Yup. The MarketWatch calendar's group of economists were predicting +0.3% in April for both the regular and core progree May 15 #3

I think reflex cynicism is as bad as reflex credulity. Both should be avoided Bernardo de La Paz May 15 #4

This is very good news for the regime -- wholesale prices dropping by 0.5% in April progree May 15 #6

Prices going down is deflationary. That is NOT good. Case of "careful what you wish for". Bernardo de La Paz May 15 #7

Not what I heard the head of the LA port say yesterday, gab13by13 May 15 #10

He said there "might" be a rush to stock up. Tariffs on most Chinese stuff is 50% (20% pre-existing + 30% tRump) Bernardo de La Paz May 15 #11

Everything I read is that the tariffs on most Chinese goods is 30% -- the 10% universal tariff plus 20% as a sanction progree May 15 #12

Everyone I listened to said the tariff was 30% also. gab13by13 May 15 #14

The PPI is quite volatile (edited) progree May 15 #13

Core PPI ex food&energy is down 0.4%, is it not? Month on month. Annualized it is up 3.1%, which is less than 4.0% March Bernardo de La Paz May 15 #15

I'm getting my Core PPI wo food & energy from Table A "Less Foods and Energy" progree May 15 #16

Very interesting to see the Jan-Apr month to month. Had not seen that together before. Thanks! . . . . nt Bernardo de La Paz May 15 #2

I'm glad you found it helpful 😊 progree May 15 #5

This also helps Krasnov push Powell gab13by13 May 15 #8

"This also helps Krasnov push Powell to cut interest rates." - for sure /nt progree May 15 #9