US Producer Prices Rise More Than Forecast in Sign of Persistent Inflation

[mahatmakanejeeves]

Source: Bloomberg

Markets
Economics

US Producer Prices Rise More Than Forecast in Sign of Persistent Inflation

-- PPI rose 11% in April from a year ago, 0.5% from prior month
-- Goods inflation led the increase, including cars, diesel, eggs

ByOlivia Rockeman
May 12, 2022, 8:32 AM EDTUpdated onMay 12, 2022, 9:40 AM EDT

@livrockeman

Prices paid to US producers rose at a solid pace in April, signaling that elevated consumer inflation could persist for longer than expected, keeping the Federal Reserve geared toward aggressive rate hikes.

The producer price index for final demand increased 11% from April of last year and 0.5% from the prior month, driven by goods, Labor Department data showed Thursday. That followed sizable upward revisions to the March figures.

{snip}

Read more: https://www.bloomberg.com/news/articles/2022-05-12/us-producer-prices-rose-by-more-than-forecast-in-april

---

No, wholesale prices did not rise 11% in April.

https://www.cnbc.com/2022/05/12/wholesale-inflation-rose-11percent-in-april-as-producer-prices-keep-accelerating.html

ECONOMY

Wholesale inflation rose 11% in April as producer prices keep accelerating

PUBLISHED THU, MAY 12 20228:34 AM EDT * UPDATED 2 HOURS AGO

Jeff Cox
@JEFF.COX.7528
@JEFFCOXCNBCCOM

KEY POINTS
-- Producer prices at the wholesale level rose 11% over the past year and 0.5% in April alone, the Bureau of Labor Statistics reported Thursday.
-- Weekly jobless claims were little changed, but continuing claims fell to their lowest level since January 1970.

{snip}

[bucolic_frolic]

1. Transportation costs are the most immediate contributor

[Marthe48]

2. Companies I deal with or did

Are passing costs along to consumers. Fuel surcharge, prices on products. Wondering when that wage hike is going to happen? Probably never, as inflation is bad enough with the price of goods going up. They'll say.

[Hoyt]

3. Come on, we know it's transitory, temporary, a hoax, greedflation . . . . . .

[Tomconroy]

4. The core inflation number yesterday was terrible.

[progree]

5. CORE PPI: April: +0.6% (March:+0.9%), 12 months: +6.9%,

https://www.cnbc.com/2022/05/12/wholesale-inflation-rose-11percent-in-april-as-producer-prices-keep-accelerating.html

Excluding food, energy and trade services, core PPI rose 0.6% in April and 6.9% from a year ago, the latter a decline from 7.1% last month.

Yes, I know, we all need food and energy to live, but anyway, for those interested in the core numbers

Back to the regular PPI:

Gas and groceries have been responsible for much of the inflation surge, with indexes tracking the two sectors up a respective 1.7% and 1.5% in April, according to the PPI data.

The gasoline index fell 3.2%, during April when prices at the pump eased. However, that trend has since reversed, with gas prices back around record highs.

[roamer65]

6. Higher demand coupled with supply chain disruptions.

Classic supply and demand driven inflation.

I’m not too bent out of shape by it.

[MichMan]

7. Inflation is by far the top concern in poll after poll

Looks like most voters agree that it is a big issue