It’s a busy week with earnings reports, approaching tax deadline and updates to economic indicators such as the Producer Price Index. Also known as PPI, the Labor Department releases it for March on Friday.
Here’s more about it.
Producer Price Index
“Inflation isn’t born in the supermarket. Rather stores inherit it as the prices of goods they buy from their suppliers rise. That’s why looking at the prices of the things that producers sell gives us a special window into where consumer prices might be going.
The PPI is a measure of inflation that is much less famous than its cousin, the CPI or Consumer Price Index. Instead of measuring how much a basket of goods and services costs, the PPI measures how much domestic producers receive for their outputs.
PPI tells us about business costs. When the economy adjusts, some of the first indications of that change will be in the producer’s prices.” ~Simon Constable
Investors can watch for unexpected increases or decreases in the three or five-month moving average to get a sense of inflationary pressure or lack thereof.
Taxes and Final Thoughts
Please let me know if you noticed a significant change in your tax liabilities this year.
As your investment advisor, there may be things that can help for 2013. Let’s do the planning.
Until next week,
Susan R. Linkous