- Wholesale inflation posts largest increase in 14 months as producer price index jumped .7% (economists predicted .4%) in August.
- The PPI report captures what companies pay for supplies such as fuel, packaging, shipping, etc.
- These costs are usually passed on to the consumer, so is a good barometer for which way inflation is going--the number came in double what was expected.
- Paired with yesterday's CPI data, inflation is nowhere near under control!
- Corporate media will try and say this is a last 'summer hoorah' of spending. Compared to August 2022, this is just inflation GROWING unabated.
- Reminder, while banks have the liquidity fairy, 'we' get the promise of 2 more rate hikes this year, Atlanta Fed President Raphael Bostic yet again enrichens himself inappropriately from his position.
- To fix one end of their mandate (price stability) from the inflation problem they created, the Fed will continue sacrificing employment (the other end of their mandate) to bolster price stability by continuing to raise interest rates--causing further stress to businesses and households.
- I believe inflation is the match that has been lit that will light the fuse of our rocket.
It never went all the way back down, up and up it goes!
Only to be passed on to consumers...
The production pipeline is still cranking out inflation 'gains' to be passed on to the consumer.