US Producer Price Inflation Nears Double-Digits

US producer prices rose far more than expected in November, data out Tuesday showed. The 0.8% MoM rise exceeded all estimates from more than four-dozen economists. The range was 0.3% to 0.7%. Prices for final demand rose 9.6% YoY (figure below), a harrowing print that easily topped the 9.2% consensus. The ex-food, energy and trade print was 6.9% YoY. Both 12-month advances were the largest since data collection began (in 2010 for the headline index and in 2014 for the trimmed gauge). The m

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2 thoughts on “US Producer Price Inflation Nears Double-Digits”

Perhaps I am smoking crack but it seems as if this kind of PPI inflation is nearing a peak, which is not to say that inflation won’t mean revert to something that is uncomfortably high, but what might amount to flawed thinking, expecting this to mean revert somewhat in H1 just seems logical. One thing I was looking at was the Milton Friedman style chart of Global M2 vs Prices paid from World PMIs, it tends to lead. It is saying that a peak is near.