Producer Price Index Shoots Up a Near-Record 11.3% in June, Smashing "Expectations"

Weird how the Democrat Mega Donors known as Wall Streeters are always "expecting" good economic news under Democrats and bad economic news under Republican presidents.

This is the producers price index, a companion measure to the consumer price index which was reported at its highest rate of increase since 1981 yesterday. The CPI measures changes in the price consumers pay, and the PPI measures changes in the price producers report receiving for the goods.

It doesn't track perfectly with CPI because a lot -- a lot -- of goods Americans buy are made outside the US now, thanks to our Globalist Davoisie Overlords who want us to Eat the Bugs.

"Unexpectedly," these Experts and Masters of the Universe were wrong again.

Inflation hit hard at the wholesale level in June, as producer prices surged a near-record amount from a year ago due to a big jump in energy costs, the Bureau of Labor Statistics reported Thursday.

The producer price index, a measure of the prices received for final demand products, increased 11.3% from a year ago, the highest reading since the record 11.6% in March.

Of that gain, almost 90% came from a 10% increase in final demand energy costs as prices for oil, natural gas and other products soared during the month.

The jump in producer prices was actually 1.1% for the month, but that represents an 11.3% jump year over year.

Don't ask me to explain this. I had insomnia last night and I haven't been good at math since freshman year at college.

I was hoping someone would step in and explain this. Joe Mannix:

Things in the PPI are 1.1% more expensive this month than they were last month.

Things in the PPI are 11.3% more expensive than they were this month last year.

Two different measures, and it indicates that things are expensive as compared to last year, but also that they are more expensive than they were last month. It isn't turning over yet.

...

The release comes one day after the BLS reported that the consumer price index, which measures final-sale prices in the marketplace, surged 9.1%, the highest 12-month gain since November 1981.

In a separate Labor Department report, weekly jobless claims rose to 244,000 for the week ended July 9, the highest number since Nov. 20, 2021. Continuing claims, which run a week behind the headline number, fell to 1.33 million, a decline of 41,000.

While there are signs the jobs market is weakening, the focus has been on inflation.

Energy and food prices have been particularly burdensome, but the June reports show price pressures are broadening.

There were a few optimistic signs in the PPI report -- prices for chicken eggs, for instance, tumbled 30.2%, while iron and steel scrap prices were off 10.4%.

Seeking Alpha notes the "unexpected" nature of these numbers:

June Producer Price Index: +1.1% vs. +0.8% consensus and +0.9% prior (revised from +0.8%).

+11.3% Y/Y vs. +10.4% consensus and +10.9% prior (revised from +10.8%). That marks the largest rise since it hit a record of 11.6% in March 2022.

Meanwhile: Not only is inflation wildly outpacing wage gains, but now wage gains are actually disappearing, as companies cut back on raises.

If you think this all sounds like bad news: the propaganda Enemy Comms media is here to tell you Stupid Proles that no, this is all good news, and you should thank your masters for the -40% increase in your chocolate rations.

The leftwing propaganda Ministers are really trying to sell you on the New Messaging that you stupid proles are better off being poorer!

Torrey M. Spears
@torreymspears
Replying to
@tomselliott

That's a pretty incredible spin from the "$15/hr living wage" people

Tom Elliott @tomselliott

Poverty, so hot right now

Eat the Bugs, peons. Consuming insect protein is good for the environment, and it's okay for you.

What's really going to make the mid-terms a bloodbath is the GOP's clear, substantive, and in-your-face commitment to changing the policies largely responsible for this economic disaster.
Posted by: rhomboid

LOL
Posted by: Helena Handbasket

posted by Ace at 01:43 PM

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