Producer Prices Up; Consumer Sentiment Hits 9-Month High

[Purveyor]

Source: REUTERS

by Reuters Apr 11th 2014 8:35AM
Updated Apr 11th 2014 10:58AM
By Lucia Mutikani

WASHINGTON -- U.S. producer prices recorded their largest increase in nine months in March as the cost of food and trade services surged, pointing to some pockets of inflation at the factory gate.

Other data Friday showed consumer sentiment hit a nine-month high in April, strengthening views economic activity was regaining momentum after a weather-induced lull early this year.

The Labor Department said its seasonally adjusted producer price index for final demand increased 0.5 percent last month, the largest increase since June last year, after slipping 0.1 percent in February.

Economists, who has expected prices received by the nation's farms, factories and refineries to gain only 0.1 percent, were puzzled by the increase last month. The government has revamped the PPI series to include services and construction. The series' short history makes it difficult to gauge a trend.

Read more: http://www.dailyfinance.com/2014/04/11/producer-prices-post-big-gain-inflation/#!slide=2504639

[cthulu2016]

1. Great news. February's PPI drop was concerning

[bl968]

2. The death of unrestrained capitalism is coming and that's what the rich are so afraid of

Prices go up and up, wages don't keep pace. Eventually the consumers have no more to spend, and that's when a great depression happens. The only way to fix it is to get more money into the hands of the consumers, not the banks. This is the fatal curse of our current unrestrained capitalist system.