In yet another sign that inflation is climbing, the latest numbers from the Producer Price Index (PPI) show that the cost of production has increased 6.2% from last year.
The Bureau of Labor Statistics’ Produce Price Index is a measure of what it costs to produce products. It is a measure of what it costs a business to create something, as opposed to the CPI, which is a measure of what it costs to consume something.
Of course, it is more a measure of the value of the dollar than it is a measure of cost. The dollar is worth 6.2% less than it was last year. This means that the dollar will lose half of its purchasing power each 11 years.