Producer Prices Surge At Fastest Rate In Almost 6 Years

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.


cherry picker Tue, 11/14/2017 - 08:45 Permalink

I don't buy drugsThey 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 itIt 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 :)

steve2241 Stuck on Zero Tue, 11/14/2017 - 10:15 Permalink

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.

In reply to by Stuck on Zero

moonmac Tue, 11/14/2017 - 11:03 Permalink

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 Tue, 11/14/2017 - 11:04 Permalink

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.