– by New Deal democrat
I sometimes don’t pay a lot consideration to producer costs. Generally they do lead client costs, however because the flip of the Millennium extra usually they’ve been coincident. However with the onset of tariff wars, they could set off among the first alarm bells.
And that will have been the case as of February’s report, launched this morning. Whereas ultimate demand costs had been unchanged, commodity costs elevated 1.0% within the month alone. Mixed with January, commodity costs have already risen 2.5% this 12 months, the largest two month enhance since spring of 2022:
The YoY graphs present related inflationary pressures apparently starting to construct:
On a YoY foundation, commodity costs are larger by 1.9%, and ultimate demand costs by 3.2%. Word that commodity costs embrace fuel and oil, and are sometimes rather more risky than ultimate demand producer costs.
Entering into commerce wars with the remainder of the world, with escalating retaliatory tariffs, plus taking a chainsaw to employment in federal companies and their counterparty contractors: what might probably go incorrect?
Producer Costs, Indignant Bear by New Deal democrat
