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US Inflation Jumps To Highest In 7 Months

Tyler Durden's picture


Producer Price Inflation data soared higher than expectations across the board this morning with Final Demand up 1.4% YoY (against 1.1% expectation) to its highest since Aug 2013. The main driver was food and apparel prices (rather unexpectedly) but we also note that ex-Food-and-Energy was a 0.6% rise (vs 0.2% exp.) which is the biggest month over month jump since March 2011.

Final demand services:

 The index for final demand services rose 0.7 percent in March, the largest advance since a 0.8-percent jump in January 2010. In March, over 60 percent of the broad-based increase can be traced to margins for final demand trade services, which climbed 1.4 percent. (Trade indexes measure changes in margins received by wholesalers and retailers.) Prices for final demand services less trade, transportation, and warehousing increased 0.4 percent, and the index for final demand transportation and warehousing services rose 0.5 percent.

In March, MoM Ex Food and Energy surged (well above expectations) thanks to a 3.3-percent increase in margins for apparel, jewelry, footwear, and accessories retailing led the advance in prices for final demand services.


Final demand goods: Prices for final demand goods were unchanged in March after moving up 0.4 percent in each of the prior three months. In March, a 1.1-percent increase in the index for final demand foods and a 0.1-percent rise in prices for final demand goods less foods and energy offset a 1.2-percent decline in the index for final demand energy.

Product detail: In March, advances in the indexes for pork; residential natural gas; pharmaceutical preparations; sausage, deli, and boxed meats; and fluid milk products offset declines in prices for gasoline, diesel fuel, liquefied petroleum gas, primary basic organic chemicals, and fresh fruit and melons.

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Fri, 04/11/2014 - 08:58 | 4646884 Headbanger
Headbanger's picture

Because Obamacare!

Fucking resign already Obozo!

Like your Un-health Secretary just did!

Fri, 04/11/2014 - 09:22 | 4647038 j0nx
j0nx's picture

Gotta love salary deflation/stagnation and massive consumables inflation. Thank your government for this shit. All the money from the rest of the country is being sucked into the major cities like NYC and DC in the form of carpet baggers coming in and buying up local real estate driving the price up for the natives. We have given up all hope of affording a SFH in the DC burbs in a neighborhood that is not overrun with illegals and section 8 shitheels.

Fri, 04/11/2014 - 08:43 | 4646886 Sudden Debt
Sudden Debt's picture


Fri, 04/11/2014 - 08:46 | 4646903 101 years and c...
101 years and counting's picture

yellen just wet her panties.  and then shit her pants in realization she cant keep printing like a drunken Econ PhD....

Fri, 04/11/2014 - 08:52 | 4646922 dcj98gst
dcj98gst's picture


Fri, 04/11/2014 - 09:01 | 4646966 Caviar Emptor
Caviar Emptor's picture

I take another victory lap as biflation rears it's head yet again: Input costs rising for both consumers and business. Pricing power? End demand? Don't make me laugh

Fri, 04/11/2014 - 09:10 | 4646995 fonzannoon
fonzannoon's picture

It's fascinating to see yields collapsing as we get roasted by inflation.

Fri, 04/11/2014 - 09:14 | 4647012 Tabarnaque
Tabarnaque's picture

And gold being smashed because higher inflation means less room for QE...! The Rigg-ulators are at work again.

Fri, 04/11/2014 - 09:23 | 4647041 Caviar Emptor
Caviar Emptor's picture

Indeedy. Fed has distorted all the usual feedback mechanisms, so you can get inflation within a deflationary setting

Fri, 04/11/2014 - 10:13 | 4647274 Four chan
Four chan's picture

its all devaluation to me. the more they print the less its worth.

my real money is cool calm and collected, as shiny as ever.

Fri, 04/11/2014 - 09:12 | 4647003 BandGap
BandGap's picture

Extremely painful way to die.  The potassium cyanide salt that is ingested mixes with stomach acid (HCl) to produce HCN and KCl.  HCN is a gas but enters the body through the digested tract and through the lung by burping. The cyanide anion complexes to hemoglobin 17 times more effeciently than oygen thus displacing oygen and not allowing the heme to participate in the oxygen cycle for metabolism.

Very painful way to die. Just take a handful of acetominophen, also a solid oral dosage form. Die of liver failure.

Fri, 04/11/2014 - 10:15 | 4647278 Four chan
Four chan's picture

whats the best way? you sound like an expert. just wondering.

Fri, 04/11/2014 - 08:52 | 4646921 krispkritter
krispkritter's picture

Yeah, it helps grow our government! What could go wrong?

Fri, 04/11/2014 - 08:57 | 4646945 JPM Hater001
JPM Hater001's picture

It means jobs!


/fucking moron

Fri, 04/11/2014 - 09:08 | 4646987 achmachat
achmachat's picture

Inflation is good for you?

If you get to be the one issuing the currency, it's HEAVEN SENT!

Fri, 04/11/2014 - 08:43 | 4646887 Oldwood
Oldwood's picture

Then we best hurry on out and buy some shit before the price goes up....bullish!

Fri, 04/11/2014 - 08:45 | 4646890 Cursive
Cursive's picture

...so prices probably rose 10% month-over-month, in actuality, and this is likely to kill company profit margins.

Fri, 04/11/2014 - 08:44 | 4646893 Max Damage
Max Damage's picture

Rock please meet Hard Place

Well done, Ben, Janet, Obummer, and the rest of you fuckin idiots

Fri, 04/11/2014 - 09:04 | 4646971 Treason Season
Treason Season's picture

They are not idiots. They are criminals. Anyone who says otherwise is either an idiot or troll.

Fri, 04/11/2014 - 09:16 | 4647019 Charles Nelson ...
Charles Nelson Reilly's picture

technicnally they're both...but I digress.

Fri, 04/11/2014 - 08:45 | 4646894 AdvancingTime
AdvancingTime's picture

You ain't seen nothing yet! Never before has mankind diverted such a large percentage of wealth into intangible products or goods and made the claim this is the primary reason that inflation has not raised its ugly head. Bottom-line much of what happens in our economic future depends on inflation or deflation. The modern economy that has evolved over the last several decades is loaded with interwoven contracts reeking of contagion. I contend that if faith drops in these intangible "promises" and money suddenly flows into tangible goods seeking a safe haven inflation will soar.


Like many of those who study the economy I worry about the massive debt being accumulated by governments and the rate that central banks have expanded the money supply. The timetable on which events unfold is often quite uneven and this fact supports the possibility of the following bizarre scenario. A key issue is one of timing. If the price of gas jumps to $8 a gallon overnight do you buy gas and not make your car payment? Answer, it could be months before your car is repossessed so you buy gas. It is important to remember that debts can go unpaid and promises be left unfilled. The article below delves into how and why inflation may bring economic chaos.


Fri, 04/11/2014 - 09:19 | 4647029 Fix-ItSilly
Fix-ItSilly's picture

Very well said.  But you did not include off balance sheet accounting and counter party quality review.

For that is what Central Banking is all about.  And that is what China and Japan are in the monetary relationship to the US.

Refer to a real life example of intangible valuation and off balance sheet accounting.  Look at Enron and its Raptors.  All works well for a time.  Counter party relationship is viewed as independent and solid and accepted by the public. 

Then real life proper valuation of intangibles occurs (debt quality, equity value) releases the contagion.  Poof, the system collapses of its own weight.

Fri, 04/11/2014 - 08:44 | 4646896 Big Corked Boots
Big Corked Boots's picture


Obama certified unperson, substitute Bush. (Whoosh!)

Fri, 04/11/2014 - 08:45 | 4646898 dcj98gst
dcj98gst's picture

IT is happening

Fri, 04/11/2014 - 08:48 | 4646910 d edwards
d edwards's picture

And a couple days ago we learned that the average person still pays more in TAXES than they do for food, shelter and clothing combined.

Something f-ed up with that!

Fri, 04/11/2014 - 08:45 | 4646901 cashtoash
cashtoash's picture

What inflation, gasoline was $3.49 yesterday, same today. No change in egg or milk price either. All is fine

Fri, 04/11/2014 - 08:50 | 4646914 krispkritter
krispkritter's picture

Wait until it's 3.49 a liter...Look! A squirrel!

Fri, 04/11/2014 - 08:47 | 4646905 dcj98gst
dcj98gst's picture

Can we call it prices not inflation.  Most mis-used term ever.

Fri, 04/11/2014 - 08:56 | 4646908 kurt
kurt's picture

Only little people worry about inflation. If they can't afford food, they should take a payday loan. If they don't have a job, they should pawn their jewelry. If they can't pay for their house they should rent an apartment, if they can't use credit they should use Rent-a-Center. If they can't affort to rent they should live in a station wagon, if they can't afford gas they should collect cans and lose the car. If they use a shopping cart they should be arrested and thrown in prison, preferably a privatized prison where they can be put to work. We should charge them room, board, healthcare. Just let them run a tab until they can pay for the arrest and expenses the cost of which is going up all the time, with inflation and all.

Fri, 04/11/2014 - 08:59 | 4646953 Oldwood
Oldwood's picture

Absolutely! There is no reason to worry about diminished or lost earnings as long as credit is available. How much would you like to borrow? Just sign here, right below your kidney appraisal.

Fri, 04/11/2014 - 09:05 | 4646974 kurt
kurt's picture

They should have thought about that before they chose a life of crime!

Fri, 04/11/2014 - 08:49 | 4646912 SilverIsMoney
SilverIsMoney's picture

"Oh great! The world is now blessed out of low-flation!"


Fri, 04/11/2014 - 08:50 | 4646915 bubblemania
bubblemania's picture


Fri, 04/11/2014 - 08:51 | 4646917 Dr. Engali
Dr. Engali's picture

What inflation? I pay the same price for my 12 Oz. bag of coffee that I paid for my 16 Oz. bag last year. There is no inflation.

Fri, 04/11/2014 - 08:54 | 4646934 krispkritter
krispkritter's picture

I'm waiting for bacon to be sold at the old 16(now 12) ounce prices but by the individual strip.  Now that's progress...

Fri, 04/11/2014 - 09:05 | 4646975 Winston Churchill
Winston Churchill's picture

Get used to it.SoP in third world countries is to buy singles of everything,

from cigarettes upwards. P & G etc are now selling their 3rd world package sizes in

Europe and the USSA.

Fri, 04/11/2014 - 09:01 | 4646964 Oldwood
Oldwood's picture

Just another derivation of "chained" inflation.

Fri, 04/11/2014 - 09:35 | 4647000 Smegley Wanxalot
Smegley Wanxalot's picture

Mix in 4 ounces of cat litter and you'll never know the difference.  Plus you can just clean the clumps out of the filter and re-use it to save money and help pay for your obamacarefairshare.


** used cat litter provides for a more rich, exotic coffee flavor.

Fri, 04/11/2014 - 10:09 | 4647245 silentboom
Fri, 04/11/2014 - 08:51 | 4646918 Seasmoke
Seasmoke's picture

Apparel for sure. Has anyone looked at the prices of Nike NFL jerseys or Addidas MAN jerseys lately. $300 !!!!!

Fri, 04/11/2014 - 08:54 | 4646929 Big Corked Boots
Big Corked Boots's picture

And yet, there were no pay increases for the laborers in the Chinese sweatshops.

Fri, 04/11/2014 - 08:56 | 4646942 dcj98gst
dcj98gst's picture

Did it snow in China.  Maybe its the weather there too.

Fri, 04/11/2014 - 08:59 | 4646951 Dr. Engali
Dr. Engali's picture

I'm sorry, but who in the hell pays $300 for a fucking jersey? We have a shitty economy, yet they can get $300 for something that it cost $5 to make.

Fri, 04/11/2014 - 09:20 | 4647026 Smegley Wanxalot
Smegley Wanxalot's picture

Idiots pay that thinking they got it made, but even smart people can get delusional. Visiting my normally sane old man a few months back, he asked if I needed any T-shirts.  I asked why, and he said he bought some nice T-shirts a few weeks back for $50 each.  I asked to see them, and they were standard fucking T shirts, nothing special, but purchased at an "upscale" store.  I let him know I was all set with T-shirts, and that he was a fucking idiot for paying $50 for an $8 T-shirt.

Fri, 04/11/2014 - 10:04 | 4647213 silentboom
silentboom's picture

Same guy who buys an Escalade with a sub prime loan and parks it on their front lawn, got to be a baller yo.

Fri, 04/11/2014 - 09:00 | 4646958 10mm
10mm's picture

Thats sports shit apparel. Idiots who buy that crap should be victimized.

Fri, 04/11/2014 - 09:31 | 4647064 FLHRS
FLHRS's picture

Visit a Harley dealership.  $30 for a ladies ball cap, $80 for a sweatshirt.  There's money out there or they wouldn't be asking these prices.  ($42,000 for a loaded Ultra - WTF)

Fri, 04/11/2014 - 10:02 | 4647203 silentboom
silentboom's picture

True, used prices are up too but likely because sub prime auto loans are flowing.  Can't wait for Ally to go bankrupt again.

Fri, 04/11/2014 - 17:10 | 4649059 Offthebeach
Offthebeach's picture

People are desperate for idenity. Will pay to avoid themselves. Plus there isn't any merchant money in self discovery.

Fri, 04/11/2014 - 09:35 | 4647076 Colonel Klink
Colonel Klink's picture

Fuck the National Felons League marketing trash and idolatry.

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