- Prior report 11.2% y/y revised to 11.5% (was already an all time high)
- PPI m/m +0.5% vs +0.5% expected
- Prior m/m reading revised to +1.6% from +1.4%
- PPI ex food and energy 8.8% y/y vs 8.9% expected
- PPI ex food and energy MoM +0.6% versus +0.6% expected
- Ex food, energy and trade +6.9% y/y vs +7.0% prior
These numbers are close to expectations but indicate no let-up in pipeline inflation pressures in April. That will spill over into CPI increases in May, June and July.
What worries me is that producers and buyers are starting to get accustomed to having to accept and pass on price increases.That's the kind of thing that the Fed wants to avoid.
Food inflation is becoming particularly troublesome globally. In April, food final demand prices were up 1.5% m/m. Intermediate prices were up 2.5% m/m following a 7.6% rise in March.