Sometimes, flat can be problematic. The Producer Price Index, measuring inflation at the wholesale level, was released today. The PPI shows 0% price growth–totally flat–and when stripping out food and energy nets a -0.2% loss. The anticipated showing was a gain of 0.3%. This month’s loss brings the year-over-year reading to an anemic 0.8% advance. Overall, pretty flat.
The National Association of Home Builders’ Housing Market index remains unchanged this month at a 63–also flat. Stocks and Bonds are pretty close to unchanged so far today. Sometimes flat and unchanged isn’t a big deal, and sometimes flat can be a problem. The question is, who is getting out of the car to see how bad the flat is?
Yesterday I mentioned that rates are trying to stage a tiny comeback, and that can’t happen with a flat.