Producer Prices Surge At Fastest Rate In Over 5 Years (Thanks To Hurricane Harvey)

Tyler Durden's picture

Great news America - your standard of living just dropped little more as producer prices rose by 2.6% YoY in September, the fastest rate of increase since Feb 2012 - driven by a surge in energy prices.

Some highlights:

  • Final demand producer prices rose 0.4% in September (as expected)
  • Final demand ex food, energy rose 0.4% m/m vs est. up 0.2%
  • Final demand rose 2.6% y/y, matching estimate
  • Final demand ex food, energy rose 2.2% y/y vs est. up 2%
  • Final demand ex food, energy and trade services rose 0.2% m/m
  • Final demand personal consumption rose 0.5% m/m
  • Final demand personal consumption rose 2.3% y/y
  • Health care services (NSA) rose 1.4% y/y; unchanged m/m

However, Energy prices seem to be the biggest driver...

The index for final demand services increased 0.4 percent in September, the largest rise since moving up 0.5 percent in April. Over 60 percent of the September advance can be traced to a 0.8-percent increase in margins for final demand trade services. (Trade indexes measure changes in margins received by wholesalers and retailers.)

Prices for final demand goods rose 0.7 percent in September, the largest increase since moving up 1.0 percent in January. Over 80 percent of the September advance can be traced to the index for final demand energy, which climbed 3.4 percent. (Higher energy prices were likely the result of  reduced refining capacity in the Gulf Coast area due to Hurricane Harvey.)

This no doubt relieves some pressure on the 'transitory' Fed - enabling higher rates (and yet lower living standards)

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spastic_colon's picture

thank gawd! i was getting worried my dollars were buying too much stuff.............the fed got to their 2% target just in the nick of time (for yellen's departure)

J S Bach's picture

Is that Harvey the storm or Harvey the perv?

GUS100CORRINA's picture

The CENTRAL BANKS have LOST CONTROL!! Finally, the guys at Phoenix Capital might be right after two years of making the call that more INFLATION is COMING and soon.

Of course, John Williams from has data that shows we have had inflation forever.

rejected's picture

Conspiracy Theory citizen.

Sam Clemons's picture

Stocks are never going to go down again.  Seriously.

BritBob's picture

Falklands Oil worth a punt?

Falklands Oil

By a ruling of the UN, Argentina will extend its maritime platform (Politica Argentina) ; New map of the maritime platform reaffirms the sovereignty of Malvinas with UN endorsement (ElCronista); Argentina enlarges its territory 35%, with a UN endorsement ...(La Capital).To add to this euphoric atmosphere the Argentine Foreign Minister stated, ''This is a historic opportunity for Argentina. We have taken a great step in the demarcation of the outer limit of our continental shelf; the most extensive boundary of Argentina and our border with humanity,'' Foreign Minister Susana Malcorra told La Nacion, which tomorrow will publicly announce the details of this resolution. (Susana Malcorra, quoted by Dinatale M, La Nacion, Argentina, 27 March 2016).


But what is the truth...

Argentina's Continental Shelf Claims and The UN CLCA Commission (1 page):-


Seasmoke's picture

So they can't hide the inflation any more. And that makes Gold goes down. Got it. 

hotrod's picture

36 billion about to be  printed up for disaster relief.

Genby's picture

Hurricane Harvey Weinstein?

rejected's picture

More BS from the BLS....

liberty777's picture
  • A scholar of Keynesianism and the central banker always wait eagerly for destruction and death and inflation.
LawsofPhysics's picture

There some more "inflation" Mr. Yellen!!!!

Better raise those rates!!!!


Arrest Hillary's picture

Hurricane Harvey Weinstein ?