Wednesday, May 21, 2008

Bureau of Labor Statistics: Comedian

According to the latest PPI release finished energy prices -- after adjusting for seasonal factors -- decreased .2% last month.

Let's look at that again.

The prices of finished energy prices decreased .2% last month.

Here's more from the same report:

In April, the index for finished goods other than foods and energy moved up 0.4 percent and was partially offset by prices for energy goods, which fell 0.2 percent. The index for finished consumer foods was unchanged from its March level.

Let's debunk that line of crap. Here are two graphs/charts. The first is from "This Week in Petroleum" and it shows this year's gas prices verses last year's gas prices:

I'm still looking for the hidden price declines in retail level gas. Maybe I don't have the appropriate decoder ring.

Here's a chart of gas futures. I blocked-off April.

That's one hell of a decline, isn't it?

I realize there is probably a statistical thing going on here. But frankly, where "seasonal adjustments" fly this much in the fact of objective reality, I have to question the veracity of the actual numbers being reported.