by Lee Adler
Wall Street Examiner
Buried deep in the data tables of the BLS’s Producer Price Index (PPI) for May is an item that reveals the long running fallacies of the CPI and the Fed’s favorite inflation fantasy, the BEA’s Personal Consumption Expenditure price index (PCE). The revealing item is the PPI for finished consumer goods. It represents the price changes that retailers pay for their finished goods inventory. It has persistently outrun the widely followed CPI and the Fed’s favorite PCE by a wide margin ever since inflation began to rebound in 2010 from the pits of the recession in 2009.