Soaring Food Costs Send Producer Prices Higher In September

Soaring Food Costs Send Producer Prices Higher In September

Tyler Durden

Wed, 10/14/2020 – 08:39

Following yesterday’s mixed bag for consumer prices (used cars soaring, rent/shelter slowing), producer prices were expected to shift back into very modest inflation YoY in September (and after 5 straight months of deflation), and across the board PPI printed hotter than expected.

PPI Final Demand rose 0.4% MoM (double the +0.2% exp) sending PPI up 0.4% YoY (against expectations of a 0.2% rise) – the first inflationary print since March…

Source: Bloomberg

That is the highest PPI YoY since February (pre-COVID).

While Energy costs are lower (-0.3% MoM, -11.4% YoY), Food costs are the biggest incremental driver of the hotter than expected inflationary print, rising 1.2% MoM (+13.3% YoY).

Certainly nothing here to stall The Fed’s ongoing inflationary pressure.

 

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Author: Tyler Durden

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