Ouch
Wholesale prices for June rose more than expected in another sign that inflation is moving at a faster pace than markets had anticipated.
The producer price index, which measures what companies get for the goods they produce, increased 1% from May and jumped 7.3% on a year over year basis. That marked the second month in a row that the PPI set a record for a data series that goes back to 2010.
Economists surveyed by Dow Jones had been looking for a 0.6% monthly increase.
Stripping out volatile food, energy and trade prices, the core PPI increased 0.5%, in line with estimates.
The PPI headline surge comes a day after the Labor Department reported a 5.4% year over year jump in the consumer price index, the biggest move for that measure since 2008.
The producer price index differs from the CPI in that it measures final demand prices that companies get for their goods. The CPI tracks what consumers actually pay at the register.
The housing market and the automobile market are on a big bubble that is going to burst and leave a lot of people under water… I’d guess by Feb of next year at the latest.
The car-leasing companies will be hardest hit if the leases go to term. Of course, for the last year or so they’ve been rolling in cash.
Housing will collapse when rates go up. The question is ‘whether the Fed will raise rates.’ Some at the Fed are now on the Modern Monetary Theory clown-car….
Strip out enough indicators you can get that core PPI down to zero, but what’s the point?
Things are going to get a lot worse. Right now there fuel shortages beginning to happen, with the biggest diesel fuel station seriously thinking rationing diesel at it’s truck stops. It’s not because it a diesel truck driver shortage but a problem getting the fuel from refineries to local fuel tanks via the railroad or pipeline.
If or when the rationing starts, prices are going to get a lot worse.
I lived through the Peanut Farmer’s stagflation. I was hoping to not see it again, but it’s the feature of Wreckovery Summer VI (give or take a Roman numeral).
Any one stop for gas today? Up another $0.10 or so over yesterday.
Pro Tip: Stock up on pasta.
Read somewhere the wheat crop is gonna be for sheet this year, in the US and Canada. And when harvest time comes whatever they have to harvest will cost more to harvest.
And laws, yes. Carter sucked rotten melons.