Posted on 02/27/2026 7:35:08 AM PST by CaptainK
Wholesale prices rose at a faster-than-expected pace in January, countering hopes that inflation was easing, the Bureau of Labor Statistics reported Friday.
The Producer Price Index which excludes volatile food and energy prices, increased a seasonally adjusted 0.8%, more than the 0.6% gain in December and well ahead of the Dow Jones consensus estimate for 0.3%.
On an all-items basis, the headline PPI rose 0.5%, also above the forecast for 0.3% and 0.1 percentage point more than the prior month.
(Excerpt) Read more at msn.com ...
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Uggg. Too soon to happen after the SOTU address.
.8% is still very small. Let’s get real here.
“””On an all-items basis, the headline PPI rose 0.5%, also above the forecast for 0.3% and 0.1 percentage point more than the prior month.”””
If Otto Penn was still in office they would report this as tremendous numbers. Best in decades.......
Yawner, jumps around all the time, looking at it over a quarter at a time gives a much better read.
Multiply by 12 for the approximate annualized rate. Not small as a trend.
We usually spend about $140 when we buy groceries, yesterday we spent about $180. Just about the same list every time. Just saying.
Food prices are always up up up. With processed foods leading the way. If you mostly buy the basics/meat, chicken, vegetables, fruits, beans/bread etc. they are inflating slower. The price for split peas is about the same as 5 years ago. Make some split pea soup!
All we should care about is that inflation isn’t over 3%. The 8%+ inflation a few years ago made us all suffer.
All you have to do is realize that precious metals ( gold, silver, platinum ) have skyrocketed as the overall value of the US dollar has decreased. Goods and servives priced in dollars will cost more. Fifty trillion dollars of government debt (growing every day) and one hundred trillion in unfunded liabilities and commitments do have negative consequences on hard working people and their nation.
The interesting thing - historically - is that the CPI doesn’t actually follow the PPI as neatly and tidily as first-blush logic might suggest... Now, macroeconomics tend to explain that fairly easily — input costs are just one of several factors on the outbound pricing.
Nonetheless, this is pretty bad news.
The chances of a Fed rate cut in March were already close to zero; not sure I see when it would be wise to cut any further.
Nobody should be pulling any fire alarms just yet — but macro watchers are definitely starting to cast a wary eye at the dreaded stagflation monster...
I don’t think the near-term expectation is disaster (yet) but it’s looking like we’re in for some chop regardless. Let’s hope that’s all it is.
But, hope is often the nourishment of the foolish without other sustenance.
0.8 is for one month. On a yearly basis it’s almost 10%. That’s huge!
Hopefully it’ll come down significantly over the next few months.
For one month, are you kidding?
I would like to see these inflation rates in a blue states vs red states comparison.
You need to multiply it by 12 for annual increase.
Yeah, no way to sugar coat it. Of course some is the tariff being funneled through. When the tariff is off, the prices will go down, actually not. If they force repayment, we get refunds. Actually not again.
Get ready for the MSM to begin pounding this point out for their dem buddies. BTW, my refund will be 50% higher this year over last year an amount easily paying for the tariff costs but that will not count.
we;ll see how this shakes out. that kind of rise should upset bonds- and yet 10 year yield is down. so which do you believe. there is still dislocation in reporting due to November shutdown - so we’ll see what gets adjusted in days ahead.
You and the others will are right..if it repeats for the next few months we shall see.
It’s actually terrible news for us.
Okay real: .8% is around 10% per year.
Not a "golden age" figure.
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