‘Significant Concern’ Creeps Into Services Sector As Prices Soar

‘Significant Concern’ Creeps Into Services Sector As Prices Soar

As expected, price pressures were evident in the February vintage of ISM services. The prices paid gauge jumped sharply from 64.2 in January all the way to 71.8 last month (red, below). That's the highest since September of 2008 and is fuel on the fire for those inclined to cite PMIs as evidence that consumer price inflation is just around the corner. Only one industry reported lower prices paid for the month (Information). "Suppliers are taking the opportunity with the commodity-price incr
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5 thoughts on “‘Significant Concern’ Creeps Into Services Sector As Prices Soar

    1. Will be interesting to see the hair-on-fire inflation figures once Q2 2020 oil prices starting coming into the YoY calculations. Despite everyone, including, presumedly, the highly esteemed Mr. Summers, knowing that we should expect outlandish inflation for this reason, we very well might end up with hysteria on our hands.

      1. It’s definitely interesting to see something called inflation and then related to money printing when in the middle of a multiyear pandemic which is essentially limiting supply chains and production capacity. Print all the money you want, take all the money you want out of circulation and it won’t stop the pandemic from existing. I wonder how much of Feb inflation related to natural gas prices due to the great freeze.

  1. While I can’t correlate what I see to the macro numbers, anecdotally a lot of what I buy is at rising prices. I don’t see this as systemic as much as opportunistic. Many providers are test the waters to see “what the traffic will bear.” On the other hand I did just buy a standby generator, something not available since early fall, at least in my area. Not only did I finally get one, but I got it with a solid 10%+ rebate from the base price on offer in Sept. On the other hand, some of the service and food prices have as much as doubled in recent weeks.

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