US Consumer Prices Are Spiking At Their Fastest In 40 Years

US Consumer Prices Are Spiking At Their Fastest In 40 Years

Following yesterday’s US PPI print at record highs, overnight we saw Chinese producer prices rising at their fastest pace in 26 years, and this morning’s US consumer price data was expected to show yet another non-transitory surge in inflation… but the actual surge was far bigger than expected.

US Consumer prices soared 6.2% YoY in October, way higher than the +5.9% YoY expected and accelerating from September’s 5.4% YoY – that is the highest since June 1982

Source: Bloomberg

Core CPI also spiked to its highest since August 1991…

Source: Bloomberg

Energy and Used Car costs continue to accelerate…

And used care price CPI isn’t done rising yet…

The shelter index increased 0.5 percent over the month, as the indexes for rent and owners’ equivalent rent both rose 0.4 percent and the index for lodging away from home increased 1.4 percent.

Oct Shelter inflation 3.48%, up from 3.16%

Oct Rent inflation 2.70%, up from 2.43%

And the surge in owners equivalent rent inflation is anything but over…

Both Goods and Services inflation are soaring…

And just in case you fall for the narrative that wages are rising too… to cover this… they’re not! Real weekly earnings are down 1.6% YoY – in other words, The Fed’s actions are destroying people’s cost of living…

Source: Bloomberg

The gap between PPI and CPI continues to run at record highs, meaning either consumers are about to be crushed or margins are going to collapse (which is odd because margins are actually at record highs)…

Source: Bloomberg

So once again we ask – will a Fed Chair Brainard ever do anything to halt this completely non-transitory surge in inflation?

Tyler Durden
Wed, 11/10/2021 – 08:38

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