FAST FIVE: US Producer Prices Soar At Record Pace In August, Up 9 Months In A Row
Another month, another series of inflation indicators begins with Producer Prices and it won't help Powell's case that this is all 'transitory'.
Headline PPI rose 0.7% MoM (above the 0.6% expected) which sent the headline print up a stunning 8.3% YoY.
Source: Bloomberg Perhaps more worrisome is the fact that the PPI pipeline shows this is far from over as Intermediate goods prices are still roaring and have yet to filter through top the end-product.
Source: Bloomberg What does this mean for corporate margins.
Source: Bloomberg Either firms hike prices (crushing the low- and middle-classes) or they eat the margin compression (crushing the upper-classes holding the stock).