In several previous posts, we presented differences between various ingredient's of PPI: gold, jewelry, durables, and nondurables. An impression could arise from these posts that all commodities in the PPI demonstrate the same behavior and we just repeat the same post over and over. This is not a fully correct conclusion. To reveal the diversity of features we present below the price index for electronic computers and computer equipment (115). The difference between the PPI and this index is displayed in Figure 1. There is a strong trend without any sign of turn in the future. The index for computers has been declining in absolute terms from the very beginning.
This is not an indication of a decrease in stock price of related companies: for example IBM.
This is not an indication of a decrease in stock price of related companies: for example IBM.
Figure 1. The difference between the PPI and the index for computers between 1991 and 2009.
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