Today the markets received data on the Producer Price Index (PPI) and without going into detail the result was, to say the least, open to interpretation. Expectations were for the month over month data to increase .2%, but came in up .4%. The year over year number was expected to be 5.9%, but came in at 6.2%. Well, the markets took the data to show that inflation has increased, and I disagree. First, last month’s year over year inflation data was 6.8%, this month came in lower at 6.2%. In my opinion, this shows that inflation, although still high, may have peaked and is experiencing bounces along the way down. As far as the monthly data goes, the increase in energy prices last month and the continuing challenge of inflated prices to seasonal shoppers, fills in the blank as to why the month over moth data increased. But the increase was higher than the consensus (prediction) and once again the economic analysts got it wrong, and that’s what the markets like to ignore these days.