August Producer Price Rise Disappoints, Despite Gasoline, Consumer Loan Cost Surge

Tyler Durden's picture

Despite significant acceleration year-over-year - thanks to a 9.5% surge in gasoline costs - producer price appreciation in August disappointed expectations. PPI Final Demand YoY accelerated from 1.9% to 2.4% (but fell below the 2.5% expectation), rising only 0.2% MoM.

The corest of the core PPI remained below The Fed's mandated inflation target for the second straight month...


But headline PPI jumped to 2.4% YoY... perhaps putting more pressure on The Fed...


Prices for final demand goods advanced 0.5 percent in August, the largest rise since moving up 0.5 percent in April. Most of the August increase can be traced to the index for final demand energy, which climbed 3.3 percent. Prices for final demand goods less foods and energy moved up 0.2 percent.

In contrast, the index for final demand foods fell 1.3 percent. 

Three-quarters of the August increase in the final demand goods index can be traced to prices for gasoline, which jumped 9.5 percent .

Over half of the August increase in the index for final demand services can be attributed to prices for consumer loans (partial), which advanced 1.7 percent 

This is the highest level of consumer loan price index since Nov 2015...

In other words, as inflation rises, the cost of taking out a loan to maintain your standard of living is also increasing...

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TheSilentMajority's picture

"Inflation deniers".

It's s a term that I coined to describe those who want us to believe that the real CPI has been anything less than 7%-13% annualized over the last 20+ years.

It is an inconvenient truth that the price of housing+education+healthcare, or the majority of most peoples expenses, has tripled or more over the last 20+ years.

LawsofPhysics's picture

Math and the laws of physics and Nature are a real bitch.  Almost 8 billion people all competing for the real resources that are required for a decent standard of living. So long as that population exists (let alone grows) then there will be plenty of demand for those resources and anything of REAL VALUE.

"Full Faith and Credit"

Seasmoke's picture

Mr. Yellen cannot hide the inflation any more.  

Fake Trump's picture

She just shaved this morning. 

Fake Trump's picture

She has nothing to hide. All of us know her pussy is as big as Angela Merkel. Size matters.

Dutch1206's picture

This is good for another +200 day in the markets.  Fire up the presses.

yogibear's picture

More Fed QE!!! Will have to be over $200 billion/month.

We hit $20 trillion.... No problem if you don't see it anymore.

After the US national debt reached the $20 trillion mark for the first time ever, a clock showing the debt in New York City has been removed.

Fake Trump's picture

Print another 20 trillions. America will be great again. Where is the problem?

silverer's picture

"Consumer Loan Cost Surge". That's good news? Hmm...