PPI Is Our X-Ray Vision Into the Supply Chain

There's a good case to be made that while the Consumer Price Index (CPI) may be the most politically salient measure of inflation, it's the Producer Price Index (PPI) that you should watch for economic intelligence.      October 14, 2021 advertisement   Own this French Castle for $60 (AND a Piece of the Profits)

Today's Top Stories From the Breitbart News Desk There's a good case to be made that while the Consumer Price Index (CPI) may be the most politically salient measure of inflation, it's the Producer Price Index (PPI) that you should watch for economic intelligence. CPI is politically relevant, at least when inflation is high, because consumers see it in their bills and at the cash register. But it only scratches the surface of the economy while PPI gives us a deeper and broader look into the economy. No doubt there are at least some readers of this newsletter for whom a nontrivial amount of time has passed since the last engagement with the nuances of the Bureau of Labor Statistics' different inflation measures. So here's a quick reminder. The CPI measures inflation by surveying what U.S. consumers paid for items at the retail level. It includes imports but excludes exports, since those are paid for by foreign consumers. Perhaps more importantly, it excludes everything further out in the process of bringing products and services to market. The PPI begins adjacent to the CPI. The "final demand" number that typically grabs the headlines is pretty close to CPI except that it includes sales to businesses, governments, and foreigners in addition to U.S. households. It is, in other words, a clearer view of what U.S. businesses are charging for their goods and services to all their customers. On Thursday, the government said the PPI index rose 0.5 percent in September and was up 8.7 percent annually, the sixth consecutive record high in data that goes back to 2010. The second half of PPI, often overlooked by the establishment media, is what's known as "intermediate demand." These are the prices paid by businesses at various stages of the production process. And here is where you get a glimpse of the true scale of the inflationary pressures in the economy. Intermediate demand prices were up a jaw-dropping 23.9 percent year over year in September. But if you really want to see the pressure inflation is putting on the economy, it helps to dig even deeper. The index for materials used by manufacturers is up 53 percent from last year. Safe to say, Thursday's PPI report marks the death of the idea that inflation is transitory. – Alex Marlow & John Carney Breitbart News Network

TOP STORY

Bidenflation: Supply Chain Inflation Rockets to 23.9%, Final Demand at Record 8.6%

A key measure of inflation jumped 8.6 percent in September compared to a year ago, the largest advance since the Labor Department began calculating annual changes in producer prices under the current system in 2010. And a measure of inflation further out in the supply chain jumped 23.9 percent compared with a year ago. The Producer Price Index for final demand rose 0.5 percent in September, a slowdown after the 0.7 percent gain in August. Compared with a year ago, the Producer Price Index is up 8.6 percent, higher than the 8.3 percent rise reported a month ago. Prices for materials for durable goods manufacturing rose 1.9 percent for the month and are up a shocking 53 percent year over year. Components rose 0.8 percent on a monthly basis and are up 7.9 percent annually. [Click here for more]

IN OTHER STORIES...

Bidenflation Stole Christmas: Prices Soar on Toys, Bikes, Electronics, Sports Equipment, and Pets

The holiday season is going to weigh a lot heavier on the finances of many American families this year thanks to inflation that is running hotter than has been seen in over a decade. The Department of Labor issued its twin inflation reports, known as the Consumer Price Index and the Producer Price Index, this week. They both showed the prices of many popular holiday gifts have... [Click here for more]

Shipping and Warehousing Prices Soar as Supply Chain Chaos Lashes Economy

The costs of moving goods around the United States has soared over the past year, adding to the inflationary pressures that have sent consumer prices skyrocketing, data from the Department of Labor showed Thursday. Businesses that arrange for the transportation of freight and cargo raised their prices 10.9 percent in September. Compared with a year ago, these logistics businesses now charge... [Click here for more]

Nolte: Biden White House Spreads Lie that Inflation Is 'High Class Problem'

White House chief of staff Ron Klain is spreading the lie that inflation and the supply chain snarl are "high class problems," which means we're lucky to have them. On Wednesday, some Harvard idiot (excuse me for repeating myself) named Jason Furman tweeted, "Most of the economic problems we're facing (inflation, supply chains, etc.) are high class problems. We wouldn't have had them if... [Click here for more]

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