Producer Prices Soar At Record Pace, 'Pipeline' Suggests Peak Inflation Far Off
After yesterday's 41-year high print for consumer prices, this morning's producer price index was expected to soar to new series highs and it did. PPI rose 1.4% MoM - far higher than the +1.1% MoM expected and up a stunning 11.2% YoY...
This is the 23rd straight month of producer price rises.
The monthly gain was broad across categories.
Core PPI rose 9.2% YoY - a new cycle high - far above the 8.4% jump expected.
Margin pressure remains a concern as Producer price acceleration outpaces the ability of companies to raise consumer prices...
And while intermediate' demand inflation is rolling over, it remains a dramatic signal for the pipeline ahead for producer prices...
But of course, The Fed hiking rates will tamp down this forest fire... and spark a stagflation storm in the meantime.