U.S. wholesale prices jump 9.7% in January, amid the highest inflation in decades

Wholesale prices jumped again in January, up 9.7%. On a monthly basis, prices rose 1% in January fueling the highest inflation in decades.

U.S. wholesale prices jump 9.7% in January, amid the highest inflation in decades

Jeff Cox for CNBC:

Prices at the wholesale level jumped twice the expected level in January as inflation pressures were unabated to start the year, the Labor Department said Tuesday.

The producer price index, which measures final-demand goods and services, increased 1% for the month, against the Dow Jones estimate for 0.5%. Over the past 12 months the gauge rose an unadjusted 9.7%, close to a record in data going back to 2010.

Excluding food, energy and trade services, co-called core PPI increased 0.9% for the month, well ahead of the 0.4% estimate. For the 12-month period, the measure increased 6.9%… goods prices outweighed those for services, rising 1.3% and 0.7% respectively.

Final demand energy prices jumped 2.5% in January, while food rose 1.6%.

Nearly all central bank policymakers say they expect a rate increase next month, and the market is pricing in a strong possibility of a 1.75 percentage point increase by the end of 2022.

MacDailyNews Take: Obviously, inflation is an ongoing concern for everyone – and every company – involved in the U.S. economy.

‘Tis best to get a handle on inflation, if you know how, while you still can.MacDailyNews, May 11, 2021

Earlier this month, Interactive Brokers founder Thomas Peterffy said, “Inflation is 7% — 1% or 2% [in interest rate hikes] doesn’t mean anything. If they really wanted to stop inflation, they would have to raise rates to 4%, 5%, 6%.”

Inflation is repudiation. — Calvin Coolidge

When a business or an individual spends more than it makes, it goes bankrupt. When government does it, it sends you the bill. And when government does it for 40 years, the bill comes in two ways: higher taxes and inflation. Make no mistake about it, inflation is a tax and not by accident. — Ronald Reagan

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      1. You don’t understand how the PPI is calculated, do you? It isn’t a political poll where self-proclaimed Christians willingly break that pesky “Thou shalt not bear false witness” commandment in order to spite their political foes.

        Inflation, as you should know, is a trailing statistic triggered by other events. Why don’t you share with us your imagination about what events in the past few years could be contributing to today’s price inflation?

        Could “easy to win” trade wars impact availability of components that the USA imports?

        Could a megalomaniac Russian leader threatening war have an impact on oil prices?

        Could hardline immigration stances without actual legislative reform have anything to do with labor availability?

        Could debt-ballooning tax cuts for fat money-hoarding corporations have anything to do with small business competitiveness?

        Could obstinate refusal by the fearful minority to get vaccinated have resulted in at least one additional wave of hospital-filling ICU patients and subsequent attempts at elementary sanitation measures to protect the unvaccinated from themselves had any impact on consumer facing businesses?

        Could record corporate profits and the insatiable appetite to grow those profits no matter what have any impact on subsequent corporate pricing?

        Could the artificial appearance of new wealth in the form of NFTs, Crypto trash, and other digital wildcat currency be a huge new factor inflating the money supply?

        Could Chyyyyna’s hugely successful Empire-building Belt and Road initiatives be taking off the market many raw materials that smaller nations or non-sellout companies need to compete?

        Could ineptitude on behalf of isolationist buffoons like Boris or DJT have any impact on trade costs and flows?

        Could decades of underinvestment in taxpayer-funded infrastructure lead to poor economic efficiency?

        Could partisan bickering and obscene gerrymandering to score political points for party above nation be undermining the USA’s ability to compete globally?

        I imagine there is much more to inflation than the current figurehead in the executive branch of the federal govt of one nation that has about 5% of the global population.

        1. “I imagine there is much more to inflation than the current figurehead in the executive branch of the federal govt of one nation that has about 5% of the global population.

          Finally after all the fantasy bloviating you got to your POINT. Biden has nothing to do with inflation, correct?

          Next you’ll tell us Trump had nothing to do with a booming economy not felt since Reagan, and three properous years for all Americans before Covid hit?

          We may have 5% of the world population, so what and irrelevant. We are the mst powerful nation that influences politics, business and markets worldwide as they emulate Number One…

      1. It has risen in other parts of the world but it has been hitting the US particularly hard. Lots of different variables at play but one of the obvious ones is how we have blown out the spending compared to other countries. Did we really need to spend trillions of dollars on a recession that we artificially created? Never let a crisis go to waste I suppose. I will never understand why anyone would want to give these dopes in Washington more money and power.

      2. The main econs of the World are printing $$…US, EU, Jpn, Chna and most of the rest are not financially healthy. The US dollar undergirds the World’s econ and JoBi “created” a record amount of $$ (diluted dollar’s value) and fiat creation ALWAYS translates to inflation.

        So, yes, inflation is being felt in “many other countries,” but facts noted above give relevance to US’ econ actions spreading inflation throughout the World. This is not to say that Prez Drift is solely responsible, but he is an all-time record breaker. On the lower podium steps for medals; G Bush, B Obama, D Trump.

        1. Adding to the Champions is the true Champion; The Federal Reserve. Since the Fed’s inception in 1913, the dollar’s value has dropped 90+%.

          The Fed’s policies are inextricable linked to boom/busts as they seek to “moderate” these deep market fluctuations inextricably linked to Keynesian policies (today = MMT_debt doesn’t matter). The real cost weighs heavily on those in the lower econ strata, as their percentage of “disposable” income makes inflation a real horror. For those that think the wealth chasm is unjust (there will always be a chasm), The Fed’s policies are mostly responsible for increasing the gap. During the “infusions” of the last 20+ yrs, most of the benefit goes to those ALREADY with assets…not to those in need.

          The Fed is King Money Creator. Creating is devaluing.

      1. Imagine how f’ing stupid you have to be to vote for a lying, corrupt dementia patient and a whore and still think you are smart!

        Even wild animals are smart enough not to let the dumbest of the herd lead them. You are literally dumber than a pack of wild dogs. Let that sink in.

          1. “Stealing the election”? I’m a little unclear. So is it Trump stole it? Biden stole it? Both or neither? The wacko Dems are clucking about how our democracy is in peril. The wacko Dems are so concerned about voting rights and making voting accessible to “everyone.” Why are they so worried? Didn’t we JUST have the “most secure” election in history? The greatest voter turnout ever? If so, why are Dems so concerned about the Nov election? When Trump won, the Dems say, “A.” When stole the election, they say, “B.” Now they are saying, “A” again? Uhh… yeah… seems reasonable to me.

            1. Yes! Every US citizen. Everyone!

              And anyone that obstructed a legal US citizen from exercising their sacred right to vote should be severely punished. Everyone!

      1. Oh, it could’ve been worse. Yet, Hillary Clinton is such an awful human being that she couldn’t even win while cheating.

        Statement by Donald J. Trump, 45th President of the United States of America:

        The latest pleading from Special Counsel Robert Durham provides indisputable evidence that my campaign and presidency were spied on by operatives paid by the Hillary Clinton Campaign in an effort to develop a completely fabricated connection to Russia. This is a scandal far greater in scope and magnitude than Watergate and those who were involved in and knew about this spying operation should be subject to criminal prosecution. In a stronger period of time in our country, this crime would have been punishable by death. In addition, reparations should be paid to those in our country who have been damaged by this.


        1. Russia, Russia, Russia!

          Bullshit, bullshit, bullshit for the gullible left side of the IQ bell curve (Democrats).


          But, nothing will ever happen to Obama, Hillary, or Biden. Because they’re deep state and therefore protected. A few patsies instead will take the fall.

  1. I once had some cash that was real
    But today I ask “what is the deal”
    With inflation gone crazy
    As freedom goes hazy
    Fauci is a slimy old eel

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