Inflation doesn’t look to be going anywhere, at least not according to the latest data from the Burea of Labor Statistics…(BLS)
- M-O-M: The Producer price index rose 0.6% in October % 0.4% excluding food and energy
- Y-O-Y: Prices for final demand goods and services jumped a whopping 8.6% tying a record high set in September.
The producer price index doesn’t give us the true measure of inflation because it looks at the production inputs, not consumption. However, as well all know, production costs translate to consumer prices which are not looking good for October. Economists are projecting a jump of 0.6% month-over-month and a year-over-year gain of 5.9%…(CNBC)
- NOTE: If the CPI reaches 5.9%, it would be the biggest year-over-year gain since December 1990.
It’s important to remember that consumers don’t expect these record prices to dissipate anytime soon. Heads of households surveyed by the New York Fed expected consumer prices to rise by a median of 5.7% over the next year, according to the bank’s October Survey of Consumer Expectations…(The Hill)
