US Producer Prices Spike At Fastest Rate In 5 Years

Tyler Durden's picture

With tomorrow's rate hike baked in the cake, today's hotter than expected PPI print for February provides Yellen more cover (as economic growth forecasts slump). PPI Final Demand surged 2.2% YoY (more than expected) driven by a 4.0% YoY jump in final demand goods. This is the highest inflationary print since March 2012.

 

Final Demand Energy prices surged 19.8% YoY

 

In February, another major factor in the increase in prices for final demand services was the index for traveler accommodation services, which rose 4.3 percent. The indexes for chemicals and allied products wholesaling; legal services; apparel wholesaling; health, beauty, and optical goods retailing; and architectural and engineering services also moved higher. In contrast, the index for automotive fuels and lubricants retailing fell 10.0 percent. Prices for wireless telecommunication services and for securities brokerage, dealing, and investment advice also decreased. 70% of the increase in prices for final demand goods is attributable to the index for electric power.

 

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Erek's picture

OT - What just happened with the DAX? Big spike down!

Hal n back's picture

Looks to me like January ppi was .6 while February was .3

.3 is still 3.6 a year.

So feb is not the biggest spike, january was.

Assuming of course, that the data was not gamed either way.

GUS100CORRINA's picture

Increasing prices with no growth globally.

One word: STAGFLATION!

The CBs have LOST CONTROL.

President TRUMP is going to be proved very right in everything he said about "OBAMA's" economy during the POTUS campaign.

As a side note, their are many who believe we are looking at double digit inflation if the TRUTH be known. Below is information on the CPI as an example from another source. The same logic would apply to PPI as well in many cases.

==========

Consumer Price Index Has Been Reconfigured Since Early-1980s

So As to Understate Inflation versus Common Experience

-----------------

CPI no longer measures the cost of maintaining a constant standard of living.

CPI no longer measures full inflation for out-of-pocket expenditures.

With the misused cover of academic theory, politicians forced significant underreporting of official inflation, so as to cut annual cost-of-living adjustments to Social Security, etc.

 Politicians look to expand further the concept of artificially-suppressed cost-of-living adjustments in current budget-deficit negotiations, through the use of the Chained-CPI.

Use of the CPI to adjust retirement benefits, private income or to set investment goals impairs the ability of retirees, income earners and investors to stay ahead of inflation.

Understated inflation used in estimating inflation-adjusted growth has created the illusion of recovery in reported GDP.

GUS100CORRINA's picture

Question: OT - What just happened with the DAX? Big spike down!

Answer: ELECTION NOT GOING WELL FOR THE ELITES!!

Germans are PISSED!!

8774_44887's picture
8774_44887 (not verified) GUS100CORRINA Mar 14, 2017 9:55 AM

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Apple10's picture

FED must stop Trump

silverer's picture

Don't worry. The Fed will stop us all.

Got The Wrong No's picture

I noticed you said "Must" stop Trump, not "Will" stop Trump. Commie's are funny like that. 

Ouagadoudou's picture

Stuff are officially getting more expensive. Awesome.

FreeShitter's picture

Theres another credit card for that.

Last of the Middle Class's picture

morning after inflation from 10 years of QE.

TheytookERjobs's picture

Word just in. Fed rate hike odds has it 110%. She's really going to do it. Crash the whole fucking world in oblivion

jamesmmu's picture
IS STAGFLATION STALKING? The Answer Is Critical To Your Financial Health!

http://investmentwatchblog.com/is-stagflation-stalking-the-answer-is-cri...

silverer's picture

I just got the renewal for business liability insurance. Never a claim, and they hit me with a 30% increase. Something going on here, for sure. Big inflation ahead? Big corporations with inside info see this coming?

pliny the longer's picture

u give them too much credit.  they're not prescient, just greedy.  shop it, show them you can be 'loyal' too 

DelusionsCrowded's picture

All those Malls and retailers going broke SOMEBODIES got to cover the cost . Welcome to the oligopoly economy , Efficiency is not an issue in a Totalitarian System .

Rome went the same way . Eventually everyone was enslaved by a few 100 familes and ofcourse no one had any motivation Finally the Germans took the place over . Unfortunity Germany has been existentially destroyed But the Chinese are building what I think is a Swiss style democracy right under the noses of our 'Democratic' masters .

Last of the Middle Class's picture

After 10 trillion in QE the inflation is going to be like that last wave to hit Fukushima and the economic destruction just as bad and the FED has known it all along trying to protect their little TBTF friends. Rate hike with a Cheshire cat smile is what you're going to see. Unbelievable they are allowed to manipulate an economy in this way.

Ricki13th's picture

The economy has been contracting even with pumped up GDP numbers, the Fed's own Q1 2017 GDP forecast is now at 1.2%. Those BLS job numbers are BS and Trump is taking the bait.

Seasmoke's picture

Amazing how they let the Inflation Genie out of the bottle since November election. Pull it Mr. Yellen.

DelusionsCrowded's picture

Lies and Damed Statistics . Interesting it seems the EU is getting ready to syncronize rates with the US .

On the Conspiritorial side of things ; the whole system might have been deliberately set up to fail ; thus the fanatical removal of Glass-Segal act  And the removal of anyone that got in the way .

 

The fundemental problem with the world economy is over production via mechanization so that Essentially anything that can be manufactured becomes in a way commoditized .So without employees How do we put money into peoples hands ? Rather obviously the economic and social system/valubles needs to be reorganized .