PPI Nugget: New Pressures On Producer Prices To Come?
Prices paid to US producers increased in August by the most in more than a year largely due to energy. Is relative US vs EU market pricing off? Here are the key takeaways!
Energy is the main culprit behind the reacceleration but it is also starting to spill-over the various broader goods categories. The cyclical inflation pressure is back in the US before the inflation reaches its target.
It will be tricky for the Fed to get CPI/PCE back to 2% with these cyclical trends.
Chart 1: PPI breakdown
Prices paid to US producers increased in August by the most in more than a year largely due to energy. Is relative US vs EU market pricing off? Here are the key takeaways!
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