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Inflation Is Getting Worse

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Inflation Is Getting Worse

PPI "unexpectedly" rises to 9.7% vs. 9.1% consensus

Bill Hennessy
Feb 15, 2022
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Inflation Is Getting Worse

www.hennessysview.com

January’s producer price index (the price companies pay to make the things you buy) rose a full 1.0% over the previous month and 9.7% over January 2021. That’s an annual inflation rate of 12% even with using the new inflation algorithms. This follows last week’s disastrous consumer price index print:

Hennessy's View
Inflation Highest Since 1982 as Cost of Necessities Soars
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a year ago · 2 likes · 3 comments · Bill Hennessy

Even more alarming to consumers: most of the PPI inflation has not been passed onto consumers. Via ZeroHedge:

And finally that pipeline flows down hill to the consumer as we note that the CPI-PPI - US margin proxy - is negative for the 13th straight month, as for now, input costs are not all flowing through to output costs for consumers...

At some point, businesses will let that pent-up inflation flow to your discount stores and supermarkets. As ZeroHedge ended its story, “It’s only a matter of time.”

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Inflation Is Getting Worse

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