Wednesday, June 16, 2010
(click on image to enlarge)
Today,the Bureau of Labor Statistics (BLS)published the Producer Price Index (PPI). The PPI uses a base period 1982 - 84 = 100. So, each month they calculate the change from the base. It is important realize that in the base period both processors and farmers were at 100.
The above graph is for cheese and the milk going into cheese. As can be seen, the processors have seen a gain while the farmers have lost this year.