The NYT reports that "some investors pointed to declines in the price of clothing and computers as evidence that high gasoline prices were not forcing up costs of other products."
If true, this would be a basis for not having confidence in investors. Computer prices have fallen in almost every month for the last twenty years. This decline provides virtually no evidence on the extent to which energy prices are being passed on in other areas.
Investors should also know that apparel prices are highly erratic so that any particular month's measure is almost meaningless. Looking to the producer price index, women's apparel has fallen in price by 0.2 percent over the last year, although it has risen at an 0.8 percent annual rate over the last quarter. Men's apparel has risen at an 0.8 percent rate over the last quarter and the last year. Footwear has risen at a 6.5 percent annual rate over the last quarter and a 2.5 percent rate over the last year.
The real mystery in this report is the fact that higher inflation in the producer price index have not shown up in the consumer price index. This suggests either sharply lower profit margins or some serious measurment problems.
As always you can get the story in the CEPR price byte.
I’m writing to you today with a sense of urgency that I haven’t felt since I began my journalism career. As executive editor of The American Prospect, I’ve witnessed firsthand how independent journalism serves as a crucial bulwark against the erosion of our democratic institutions. Today, that role is more vital than ever. Can you step up today and show your support?
The winds of authoritarianism are blowing stronger. We’re seeing alarming signs of a coordinated effort to silence critical voices and undermine the very foundations that support progressive causes. As Bob Kuttner presciently wrote in our August 2024 issue, a weaponized IRS could attack the very foundations of the progressive movement. We need readers to step up and help us dig in for the long haul.
We’re falling behind in our spring fundraising campaign, and with so much at stake we can’t afford to come up short. If you value fearless, independent journalism that holds the powerful accountable and defends democracy, now is the time to step up. The American Prospect depends on reader support to stay in the fight. Pitch in today and help us close the gap. Please consider making a donation today.
–David Dayen, Executive Editor
Copyright 2025 | The American Prospect, Inc. | All Rights Reserved