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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 - 08:47 | 4646906 negative rates
negative rates's picture

There's a pill for that.

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 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 - 08:46 | 4646902 negative rates
negative rates's picture

A little strong today, is the end near for you and you just have to get it out?

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 | 4646895 negative rates
negative rates's picture

Price inflation along with monetary deflation bitches.

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.

Fri, 04/11/2014 - 08:53 | 4646927 dcj98gst
dcj98gst's picture

Very significant especially since the Yuan has been dropping.

Fri, 04/11/2014 - 08:54 | 4646928 the not so migh...
the not so mighty maximiza's picture

if you eat the packaging the food came in you will get your moneys worth

Fri, 04/11/2014 - 09:10 | 4646948 Bill of Rights
Bill of Rights's picture

BLM fracking racket exposed! Armed siege and cattle theft from Bundy ranch really about fracking leases


He does claim to hold the grazing and water rights under Nevada law – the view, I think, is that the revision in 1993 (by the Feds) has no legitimacy.

Fri, 04/11/2014 - 09:39 | 4647095 Colonel Klink
Colonel Klink's picture

So it's NOT about saving some turtle which cows aren't known to eat or trample on purpose!  Who knew!!

Fri, 04/11/2014 - 09:06 | 4646960 CaptainSpaulding
CaptainSpaulding's picture

Wunderbar German bologna index... $2.49/lb @ Ahold aka Stop & shop. Inflation unchanged.... All good.

Fri, 04/11/2014 - 09:03 | 4646969 redbird
redbird's picture

Higher prices = more tax revenue.  Everything working acording to plan.


Fri, 04/11/2014 - 09:05 | 4646973 sessinpo
sessinpo's picture

Considering the trillions printed, shouldn't inflation be double digits, at least?

Fri, 04/11/2014 - 09:08 | 4646985 Winston Churchill
Winston Churchill's picture

When the money gets out of bank reserves look out for triple digits.

Fri, 04/11/2014 - 09:30 | 4647058 e_goldstein
e_goldstein's picture

When formerly useful petrodollars come home to roost, look for quadruple digits.

Fri, 04/11/2014 - 09:15 | 4647007 Dr. Engali
Dr. Engali's picture

We won't see the major effects of the trillions printed until the banks start lending and the fractional reserve "money" creation hit the markets. Right now the trillions printed are reserves in the banking system. What we are seeing is the effect of is the world's repudiation of the dollar. That is where the real danger lies.

Fri, 04/11/2014 - 11:28 | 4647615 optimator
optimator's picture

Wait till they start taking some of the trillions out of the market!

Fri, 04/11/2014 - 09:10 | 4646994 buzzsaw99
buzzsaw99's picture


Fri, 04/11/2014 - 09:15 | 4647010 No Quarter
No Quarter's picture

Inflation (real and reported) being up, think how much more that will be when interest rates begin to rise. 

So we have:

Markets  down on the year - check

Inflation Up- check 

manufacturing down- check

Government spending and entitlements Up- Check

Real wages for the majority Down- Check

Food costs and prices Up- Check

Homicidal/Suicidal  Government- Check

Until recently, figured this shit show would take some time to unravel.. I'm thinking we're in for a hell of a ride this year. Wheres my damn helmet

Fri, 04/11/2014 - 09:14 | 4647011 youngman
youngman's picture

Are we going to have actual inflation at 7% and the 30 year bond at 2.3%...seems like it to is where the inflation will show up...its looking like a bad food year the world over..Brazil...California...Mexico...all having bad years...and cattle and pork production is all screwed up...with drought and disease

Fri, 04/11/2014 - 09:17 | 4647022 MeMongo
MeMongo's picture

Pabst Blue Ribbon you serfs...24 pack for $12.99..that's 48 beers for just $25 bucks. Shit Mongo could have drink for like 2 or 3 days!

Fri, 04/11/2014 - 09:57 | 4647184 silentboom
silentboom's picture

It got a blue ribbon for god sake so it must be good!

Fri, 04/11/2014 - 18:00 | 4649235 kurt
kurt's picture

This beer has acceptable levels of vomitoxin, look it up; vomit toxin!

Fri, 04/11/2014 - 09:21 | 4647034 A_Nejad
A_Nejad's picture

What you mean? You've got aaaalll them fat pigs over have unknown resource for Bacon people, and I bet the pleasure would be just as good as real Miss. Piggy!! 

Fri, 04/11/2014 - 09:23 | 4647042 Smegley Wanxalot
Smegley Wanxalot's picture

If PPI excluding food and energy is up that much, imagine it with food and energy.  Gas is up about 8% in just the past 30 days, and YoY food is probably up 15%.

But ... there is no inflation.  I know because they said so on CNBC.

Fri, 04/11/2014 - 09:24 | 4647043 RedHarley
RedHarley's picture

BLM fracking racket ??  The $1.27 million in leases discussed in the article wouldn't pay for a couple days of one of Moochelle's vacations.

Fri, 04/11/2014 - 09:30 | 4647056 intric8
intric8's picture

Really? Wait till russia/china ditch the petrodollar. A gallon of oj will cost 15 bucks, same goes for milk, and keeping everyones tummies from ulcerating due to a lack of food will force obama to distribute food credit cards for everyone. Thank heavens for the federal government looking out for us! I hope they manage even more areas of my life! Wahooo!

Fri, 04/11/2014 - 09:35 | 4647075 The_Ungrateful_Yid
The_Ungrateful_Yid's picture

Time to pack up and leave this shithole if ya can!

Fri, 04/11/2014 - 09:41 | 4647108 A_Nejad
A_Nejad's picture

come to Europe, we still got places you can get "some" for a buck...Albania is a good start...the trick is to surive the first 36 hours.

Fri, 04/11/2014 - 09:38 | 4647093 Spungo
Spungo's picture

Inflation is good because it helps people get out of debt. When your food and energy bills double, this leaves less money at the end of the month to pay down your debts. Not being able to make any additional debt payments makes the debt go away faster.

Fri, 04/11/2014 - 09:40 | 4647103 BeerMe
BeerMe's picture

There is no inflation here.  /sarc

Fucking scam artists.

Fri, 04/11/2014 - 09:46 | 4647137 Itchy and Scratchy
Itchy and Scratchy's picture

Yeah! Finally we're gettin' higher prices! Thanks good right?

Fri, 04/11/2014 - 09:53 | 4647169 silentboom
silentboom's picture

YES!!! I was so scared of deflation but now that I can pay more for everything I'm jumping for joy!!!

Fri, 04/11/2014 - 11:04 | 4647488 TalkToLind
TalkToLind's picture

Wait, it gets better.  If you can delay your consumption a little longer you can enjoy even moar expensive prices!  

Fri, 04/11/2014 - 10:58 | 4647454 TalkToLind
TalkToLind's picture

"Did I do that?"  ~Janet Yellen in her best Urkel voice.

Fri, 04/11/2014 - 11:18 | 4647559 NoWayJose
NoWayJose's picture

Can I walk in to Walmart and McDonalds and ask to pay just 1.6% more than their prices from a year ago?

Fri, 04/11/2014 - 11:34 | 4647649 q99x2
q99x2's picture

Up my FAFSA. Yellen MothaFucka.

Fri, 04/11/2014 - 11:35 | 4647654 Vooter
Vooter's picture

And this despite the fact that there's no inflation!

"Why, anybody can have a brain. That's a very mediocre commodity. Every pusillanimous creature that crawls on the Earth or slinks through slimy seas has a brain. Back where I come from, we have universities, seats of great learning, where men go to become great thinkers. And when they come out, they think deep thoughts and with no more brains than you have. But they have one thing you haven't got: a diploma."

Fri, 04/11/2014 - 13:04 | 4647984 argentuman
argentuman's picture

Therefore, by virtue of the authority vested in me by the Universita Committeeatum e pluribus unum, I hereby confer upon you the honorary degree of Th. D.

Fri, 04/11/2014 - 11:54 | 4647733 robertocarlos
robertocarlos's picture

If you remove cows then there is no inflation.

Fri, 04/11/2014 - 12:43 | 4647905 TalkToLind
TalkToLind's picture

Your favorite breakfast cereal sold in 10 x 15 envelopes, it's coming.  And the gum chewing public still won't notice because the price didn't change.

Fri, 04/11/2014 - 15:15 | 4648588 whidbey-2
whidbey-2's picture

Why does anyone believe the inflation data we are offered??  The government uses data that has doubtful origins- wholesale prices, god knows what the retailers do to prices; this data is used to prove that the FED has nothing to worry about in its FOMC edits, when we (and they) know that the taper process is pushing prices up by simple mechanics. they just don't when. Will, they have been wrong on timing (Dr. Yellen's fault). It was only a guess in any case.  ZH needs an Editor who know when to by pass junk mail.

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