It would appear there is still more inflation coming down the pipe.
From ZeroHedge:
Following yesterday's CPI scare, analysts were hoping that Producer Prices will decelerate modestly. They were wrong, very wrong. PPI printed 11.3% YoY in June (back up near record highs and well above the +10.8% expected)
Source: Bloomberg
This is the 27th straight month of MoM increases in producer prices.
Final demand goods:
The index for final demand goods moved up 2.4 percent in June, the sixth consecutive rise. Nearly 90 percent of the June increase can be traced to a 10.0-percent jump in prices for final demand energy. The indexes for final demand goods less foods and energy and for final demand foods advanced 0.5 percent and 0.1 percent, respectively
Over half of the June increase in the index for final demand goods is attributable to gasoline prices, which jumped 18.5 percent. The indexes for diesel fuel, electric power, residential natural gas, motor vehicles and equipment, and processed young chickens also moved higher. In contrast, prices for chicken eggs dropped 30.2 percent. The indexes for iron and steel scrap and for jet fuel also decreased.
Final demand services:....
....MUCH MORE
As with a pig in a python, this is going to take a while to work its way through the system.
And, as usual, thanks to ZeroHedge for their "Arrows on charts for the directionally challenged."
