Inflation Surprise: Producer Prices Jump More Than Expected

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U.S. producer prices increased by the most since 2009 in January, according to a report released Wednesday by the Department of Labor.

The producer price index for final demand soared 1.3 percent, the biggest gain since the government changed the way the inflation metric is calculated in December 2009. Compared with a year ago, the PPI is up 1.7 percent. Prices of services jumped 1.3 percent and were responsible for two-thirds of the January gain.

The cost of goods surged 1.4 percent after rising 1.0 percent in December. Economists polled by Econoday had forecast the PPI would rise of just four-tenths of a percentage point. The faster-than-expected rise in prices will fuel criticism of the Biden administration’s $1.9 trillion stimulus bill. Critics have warned that the bill risks pushing inflation too high.

Hmmm ... a 2.4% increase since December. Anyone notice the 25% increase in gas prices? LOL. Anyone got their DEMOCRAT Dollars/Biden Bucks yet? Anyone seen their paychecks go up proportionally to that inflation percent? Anyone notice shelf shortages?

I gotta go shovel some snow.

See ya,
Snarl

a reply to: Snarl

I said after the election that people better be ready for a bumpy ride.
Dominos start to fall.
It starts with gas prices.

a reply to: Snarl

It's gonna be bad World’s $281 Trillion Debt Pile Is Set to Rise Again in 2021

a reply to: Snarl

Definitely shelf shortages appearing at the grocery.

Keep asking for more free cheese, printing money doesn't ever cause inflation.

How about opening things back up you morons in government.

With the extremely low interest rate, I have been expecting a rapid inflation rate. It’s the only way we can pay back the huge debt, is to do it with inflated dollars.

originally posted by: AugustusMasonicus

Keep asking for more free cheese, printing money doesn't ever cause inflation.

How about opening things back up you morons in government.

I think it's too late now.

The damage is done.

originally posted by: Nickn3
With the extremely low interest rate, I have been expecting a rapid inflation rate. It’s the only way we can pay back the huge debt, is to do it with inflated dollars.

I clearly remember the horrible inflation in the mid to late 70's, it wasn't until Reagan became President that it finally stopped. It was so bad that if we saw something on a good sale that we used regularly we bought it, even if ours was working fine, or we had some on hand, just in case, because we knew that by the time we needed it the price would have gone way way up.

That stuck with me all these years later as my really "poor" years were the years prior to Reagan taking office. I always have on hand two extra of things I use regularly. I wait until they are on a really good sale and get them and store them in my garage or a closet. Looks like this habit may pay off while the Democrats run the nation once again.

Not just producers...so let's get good and mad about the real problems.

Gasoline jumped $0.28 in my area, just in one day. Yesterday.
Why? Our stockpiles have never been higher, and output remains low.

The real reason? Speculators on the market think that this freeze somehow hurts the oil industry. They determine 3 months ahead of time that somehow the price will increase and we see the changes on a daily basis.

It's a rigged game. Guess how much the gov't determined raising the daily price of gas to be, that was highway-robbery (price gouging)? $0.29 or roughly 10%. So gas companies can raise their prices $0.28 anytime they want and the morons in the gov't that made the (Big Oil lobbied) laws can't do anything about it.

Sources? Here, here, and here.

Also, here, here, and a good .pdf to read.

a reply to: Snarl

I cannot find the source, or any source right now, but I read that Biden's covid relief plan will put 40% more cash in circulation. That sounds like a large percent, and I'm sorry I can't back it up. But it got me thinking nonetheless, that 1.9 trillion dumped into circulation will indeed exacerbate inflation, right?

a reply to: new_here

Anybody elses grocery bill double also? Mine has DOUBLED since the covid crap hit...my pay hasnt gone up, how do i budget for that?

Wtf...greedy buttheads

I just ordered 200 gallons of LPGas for about the price I paid for 400 gallons several months ago. I wonder how much the increase is due to the Democrats and how much in due to the weather?

The local power plant started up their emergency generator this morning at around 5:00am. I will bet that jet engine takes a lot of natural gas just to help with the increased load from the power outages being restored. Three miles away but I can tell when it starts if I am awake. They have to make up all those frozen windmills.

a reply to: neomaximus10

Yes I was shocked at the register total just the other day at ALDI. Their prices are better than most.

My gas literally went from 2.27 to 2.57 in a night.

I doubt it was for Valentine's.

I hope ATSers were on top of their game and got lots of this, while it was still available.

a reply to: Snarl

I thought Trump was going to bring back American manufacturing and stop all that offshoring.

This is what that looks like.

Protected American primary manufacturers get to gouge. The money goes away from the general public and falls into the lap of the few.

And still national and public debt is out of control. For four years, it was not even considered as a factor in the economy.

The debt is unserviceable. There will be a reckoning.

originally posted by: The2Billies

originally posted by: Nickn3
With the extremely low interest rate, I have been expecting a rapid inflation rate. It’s the only way we can pay back the huge debt, is to do it with inflated dollars.

I clearly remember the horrible inflation in the mid to late 70's, it wasn't until Reagan became President that it finally stopped. It was so bad that if we saw something on a good sale that we used regularly we bought it, even if ours was working fine, or we had some on hand, just in case, because we knew that by the time we needed it the price would have gone way way up.

That stuck with me all these years later as my really "poor" years were the years prior to Reagan taking office. I always have on hand two extra of things I use regularly. I wait until they are on a really good sale and get them and store them in my garage or a closet. Looks like this habit may pay off while the Democrats run the nation once again.

Four years legacy of Trump 'economics' and yet somehow the Dems did this in a month?

You do realize that everyone doesn't go out and buy like crazy just because there is a new POTUS?

a reply to: Snarl

You aint seen nothing yet.

originally posted by: carewemust
You aint seen nothing yet.

I agree with chr0naut

The debt is unserviceable. There will be a reckoning.

People much smarter'n me are saying this will look like 1929 + 2000 on steroids. I just want to see the price of land fall before it hits.

a reply to: AugustusMasonicus

This is what you wanted Augustus . Congratulations you got what you wanted .