Producer Prices Surge At Fastest Rate In Almost 6 Years

Tyler Durden's picture

Following September's hotter-than-expected Core PPI (and 5Y high in PPI), October was expected to see a modest slowdown but headline PPI printed a massive 2.8% YoY (smashing the 2.4% exp). This is the hottest PPI since Jan 2012,  driven by surges in fuel prices and drugs.


Core PPI also beat expectations, rising 2.4% YoY (vs 2.2% exp) - also the highest since Feb 2012...

Under the hood...

Nearly half of the increase in prices for final demand services can be attributed to margins for fuels and lubricants retailing, which surged 24.9 percent.  

Almost half of the rise in the final demand goods index was the result of higher prices for pharmaceutical preparations, which increased 2.1 percent.

December rate-hike odds were at 97.1% right before the PPI print.

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Dogman57's picture

I hate that when my drug prices go up.  My supplier threatened me if I did not keep buying from him.

eclectic syncretist's picture

Seems like a good day to sell everything and forget about it.

cherry picker's picture

I don't buy drugs

They tell me I got hypertension.  Had it all my life.  BP is usually 180 to 200.

Now they say I have to pay more for insurance and so on.

I am not overweight and feel good.

They can take their con job and stuff it

It is a big money grab and the cartel in washington is training the doctors to be pill pushers and their cronies sell fear to the brave people to extract more and meanwhile our right to say no or fuck you is dwindling away.

I am still feeling good :)

Stuck on Zero's picture

My Grandfather had high blood pressure right up unti he was 92. Then he dropped dead. Think how long he would have lived if didn't have high blood pressure.

steve2241's picture

76?  Kneeling before the alter of one-size-fits-all medicine is dangerous to your well-being.  There is no average shape of a heart, a pancreas, a liver.  By the same token, a BP of 200 can't be high for EVERYONE.  Because everyone is different.  Modern medicine practices one-size-fits-all medicine because it would be immensely inconvenient otherwise.

business as stusual's picture

Unless you had an autopsy performed there is no way to determine if high blood pressure was the cause of death.


Correlation is not causation.

Bill of Rights's picture

Good for you CP....Fuck the Medical Cartels, its all about money not care with these no good sucks,

silverer's picture

I'd say at least 3/4 of the drugs being pushed out there could be stopped with little to no effect. Many people would improve just due to deletion of side effects.

wmbz's picture

The "experts" have just changed (lowered) what they say is a healthy blood pressure.

It has nothing to do with selling drugs, or so they claim.

All I can say is that the number one drug salesmen on this planet are doctors.

charlewar's picture

am thrilled to be allowed to pay more for the same shit.

wonger's picture

Bookie odds are 1-14 for rate increase and 4.6-1 for no change, yet fed funds futures are 97% for rate increase lol 

Bill of Rights's picture

And gold drops on higher prices...and the DXY down a half percent..what a fucken joke this sector has become.

remain calm's picture

Fed will raise rates now

silverer's picture

And the stock market will drop like a one foot diameter core of a neutron star to the center of the earth. But you are right. Watch this increase, folks: 0.001% basis point. See? Fixed it!

shizzledizzle's picture

The fed should have been raising rates since 2012. They will continue with the .25 bps hikes until something breaks no matter what they say. They have to.  

silverer's picture

You don't suppose that means inflation, do you? Where did I hear that warning before?

bobert727's picture

Fuels and Lubricants? You mean like Astro-Glide?

Two Theives and a Liar's picture

Bond market is stirring a it smells something...hmmm...rhymes with...coinflation

nah...couldn't be! 

Crypto for the win Alex! 

moonmac's picture

It's onee thing when you’re busy to raise prices but it’s another to raise them when business is dead slow. Supply & Demand never matters to Central Planners.

juggalo1's picture

Why hasn't Trump pushed any of the price competition legislation he campaigned on?  He said he would enforce bulk price negotiation on behalf of the federal government, as well as aggressive negotiation to bring down drug costs, with threats of reimportation etc.  I guess he was lying as usual...  Too bad I believed.  Oh that's right.  I didn't.