Peter's Blog

Producer Prices Surge Again in August

Producer prices came in hot again in August, charting the biggest annual gain in nearly 11 years. This indicates “transitory” inflation isn’t going away any time soon. The PPI for August rose 0.7% month-on-month. Economists were forecasting a 0.6% rise. This follows on the heels of two straight months with producer prices increasing 1.0%.

Producer Prices Undercut Transitory Inflation Narrative

While the CPI numbers came in around expectations in July, the producer price data came in hotter than expected for the seventh straight month, putting a damper on the notion that “transitory” inflation might be cooling.