Sign up today for an exclusive discount along with our 30-day GUARANTEE — Love us or leave, with your money back! Click here to become a part of our growing community and learn how to stop gambling with your investments. We will teach you to BE THE HOUSE — Not the Gambler!

Click here to see some testimonials from our members!

Producer Prices Surge At Fastest Rate In Over 5 Years (Thanks To Hurricane Harvey)

Courtesy of ZeroHedge. View original post here.

Great news America – your standard of living just dropped little more as producer prices rose by 2.6% YoY in September, the fastest rate of increase since Feb 2012 – driven by a surge in energy prices.

Some highlights:

  • Final demand producer prices rose 0.4% in September (as expected)
  • Final demand ex food, energy rose 0.4% m/m vs est. up 0.2%
  • Final demand rose 2.6% y/y, matching estimate
  • Final demand ex food, energy rose 2.2% y/y vs est. up 2%
  • Final demand ex food, energy and trade services rose 0.2% m/m
  • Final demand personal consumption rose 0.5% m/m
  • Final demand personal consumption rose 2.3% y/y
  • Health care services (NSA) rose 1.4% y/y; unchanged m/m

However, Energy prices seem to be the biggest driver…

The index for final demand services increased 0.4 percent in September, the largest rise since moving up 0.5 percent in April. Over 60 percent of the September advance can be traced to a 0.8-percent increase in margins for final demand trade services. (Trade indexes measure changes in margins received by wholesalers and retailers.)

Prices for final demand goods rose 0.7 percent in September, the largest increase since moving up 1.0 percent in January. Over 80 percent of the September advance can be traced to the index for final demand energy, which climbed 3.4 percent. (Higher energy prices were likely the result of  reduced refining capacity in the Gulf Coast area due to Hurricane Harvey.)

This no doubt relieves some pressure on the 'transitory' Fed – enabling higher rates (and yet lower living standards)


Do you know someone who would benefit from this information? We can send your friend a strictly confidential, one-time email telling them about this information. Your privacy and your friend's privacy is your business... no spam! Click here and tell a friend!





You must be logged in to make a comment.
You can sign up for a membership or get a FREE Daily News membership or log in

Sign up today for an exclusive discount along with our 30-day GUARANTEE — Love us or leave, with your money back! Click here to become a part of our growing community and learn how to stop gambling with your investments. We will teach you to BE THE HOUSE — Not the Gambler!

Click here to see some testimonials from our members!