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.