US Producer Prices Soar At Record Pace In May Led By Food & Energy
US Producer Prices soared 6.6% YoY in May – the fastest pace on record. This is the 13th straight month of MoM PPI increases…
Over 40 percent of the May increase in the index for final demand services is attributable to margins for automobile retailing (partial), which jumped 27.3 percent.
The indexes for truck transportation of freight; apparel, footwear, and accessories retailing; portfolio management; chemicals and allied products wholesaling; and hardware, building materials, and supplies retailing also rose. Conversely, margins for food retailing fell 3.6 percent. The indexes for traveler accommodation services and for airline passenger services also decreased.
Within the index for final demand goods in May, prices for nonferrous metals rose 6.9 percent. The indexes for beef and veal; diesel fuel; gasoline; hay, hayseeds, and oilseeds; and motor vehicles also advanced. In contrast, prices for fresh fruits and melons declined 1.9 percent. The indexes for primary basic organic chemicals and for asphalt also moved lower.
Food & Energy costs were the biggest drivers of the surge…
Finally, the spread between CPI and PPI remains extreme (though did narrow very modestly in May as we suspect costs are being passed on to consumers)…
Transitory cost-push inflation?
Tue, 06/15/2021 – 08:48