When the October CPI came out, the mainstream spin was that inflation had peaked. But they might have gotten a little ahead of themselves. The Producer Price Index (PPI) data for November indicates that we may well see more consumer price inflation down the road.
Producer price data for September was bad news for people looking for relief from rising prices.
The Producer Price Index (PPI) rose by 0.4%, doubling the 0.2% projected increase, according to data released by the Bureau of Labor Statistics (BLS).
If you’re hoping red-hot inflation will cool down significantly in the coming months, you’re probably going to be disappointed if producer prices provide any indication.
We got the CPI data for March this week. As expected, prices spiked significantly again last month. A lot of people in the mainstream are calling it “Putin’s price hike.” Friday Gold Wrap host Mike Maharrey says it would be more appropriate to call it Powell’s price hike. In this episode of the podcast, he digs into the CPI data and explains why the blame for high prices is largely misplaced and inflation probably hasn’t peaked.
The mainstream seemed to take the March CPI data as good news. With core CPI coming in below expectations, the narrative is that we’ve probably hit peak inflation. But the producer price data that came out yesterday tells a different story.
In another sign that the inflation train is far from running out of steam, producer prices were up big again in February.
The Producer Price Index (PPI) for final demand surged 0.8% month on month. This was close to the expectation. The annual increase in producer prices came in at 10%, tying the all-time record.
Federal Reserve Chairman Jerome Powell “retired” the word “transitory” as it relates to inflation back on Nov. 30. Just two-and-a-half months later, we’re seeing a new word bandied about to describe inflation — persistent.
Less than a week after the January CPI data came in even hotter than anticipated (again), we got yet another signal that persistent is a much better word for the inflation situation. Producer prices (PPI) doubled expectations, charting the biggest increase in eight months.
The producer price index rose at the fastest rate in the history of the data set in November. This is a runaway inflation train hurtling down the tracks toward consumers. And despite all the talk, the Fed won’t be able to stop it.
Much hotter than expected CPI data for October stole the spotlight on Wednesday, but there was more bad news on the inflation front that received less attention. The annual Producer Price Index (PPI) increase in October tied September’s record, as rising producer prices continue to undercut the “transitory inflation” narrative.
Producer prices came in hot again in August, charting the biggest annual gain in nearly 11 years. This indicates “transitory” inflation isn’t going away any time soon.
The PPI for August rose 0.7% month-on-month. Economists were forecasting a 0.6% rise. This follows on the heels of two straight months with producer prices increasing 1.0%.
