PPI just about measures everything; food, fuel, medical and services over a period of time so its real inflation... get ready for serious debasement of money. Soon the family pet just might be tomorrow nights dinner.
of course it is real inflation....but if you mean the PPI it is put out by the BLS on an industry segment basis, there is no consumer PPI (that is the CPI).
"PRODUCER PRICE INDEXES –MAY 2013
The Producer Price Index for finished goods rose 0.5 percent in May, seasonally adjusted, the U.S.
Bureau of Labor Statistics reported today. Prices for finished goods fell 0.7 percent in April and 0.6
percent in March. At the earlier stages of processing, prices received by manufacturers of intermediate
goods declined 0.1 percent in May, and the crude goods index advanced 2.2 percent. On an unadjusted
basis, prices for finished goods moved up 1.7 percent for the 12 months ended May 2013"
Note, the CPI for May was 1.4, but they are different basis. the proverbial apples and oranges.
that said, what did you mean by saying the PPI measures "real inflation" I don't think there is a PPI for housing (since there is not an industry producing..housing, just the the materials that go into housing. ?
PPI is the producer price index or better known as the wholesale level while the CPI as everyone knows is the Consumer Price Index...
If the PPI which almost measures every buyable thing is at 9.6% then when it moves onto the CPI phase one could add delivery costs, storage costs like refrigeration, warehousing and handling its conceivable the end process of the product could reflect a 10.5% increase in cost.
Inflation is here and its the worst kind as to where the cost of living goes up and yet there is no salary increase... in fact net disposable income is declining as wage earners are forced to contribute to medical and retirement plans, increased travel expenses, reduced pay because of reduced hours worked.
The only resort is find an investable item that will pace inflation to preserve one's savings.