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‘This Is Concerning’: PPI Scorcher Torches CPI Relief Narrative
A day on from another generationally high read on US consumer prices, data suggested pipeline pressures remained acute in March.
Producer prices rose 11.2% YoY in the world's largest economy last month, the BLS said (figure below).
That easily exceeded consensus and marked the hottest reading since 12-month data were first calculated more than a decade ago.
The monthly increase, at 1.4%, was also a record.
The ex-food and energy print was 9.2%, nearly a percentage point above estimates. Ex
They did not receive the money, you nitwit! They did not receive the money!
This is our concern Dude.
Let’s see: a once in a century pandemic, the beginnings of the great decoupling, the fed’s policies since 2009, and now the most dangerous proxy war since 1962…Oh. and aging populations around the world…
Oh, and amazingly, through it all, the rate of our green house gas emissions keeps increasing.
We set a record for the amount of increase in methane emissions in 2021:
https://www.noaa.gov/news-release/increase-in-atmospheric-methane-set-another-record-during-2021
It’s possible we’ve pasted a tipping point in methane emissions “NOAA scientists are concerned that the increase in biological methane may be the first signal of a feedback loop caused in part by more rain over tropical wetlands that would largely be beyond humans’ ability to control”.
PPI is about business activity, not money. When (parts) supplies fall, prices rise. Wait, isn’t that Econ 101? The Fed may have more money than God but it ain’t got no missing chips, etc.