Saturday, February 7, 2009

Set PPI = $1.52

5 lb Part Skim Mozzarella: $9.18 (a)
102 oz tomatoes: $2.43 (b)
25 lb flour: $9.78 (c)
720 Slice of Pepperoni: $7.76 (d)

Enter the PPI equation:

PPI = $0.01 + (a)/10 + ((b)/24)(2) + (c)/50 + (d)/40; or

PPI = $0.01 + $0.92 + $0.20 + $0.20 + $0.19

Which gives us a 07FEB09 PPI of $1.52. This is a 5% drop in 10 days, due to a 6% drop in the price of cheese. There are three theories as to the reason for the drop in the price of cheese:

1) Lower fuel prices are working their way through the dairy industry;
2) Consumers are hurting and putting less cheese on their mac, reducing cheese demand and price;
3) Intervention by the most merciful President Obama.

1 comment:

Kyle said...

I have seen him lose his cool many times in the past few weeks.

Plus, he went from hope and change to TERROR and CATASTROPHE and OBEY THE OBAMMY!

Isn't this stuff hilarious?