Yikes! Inflation Nation!!!

Energy and Transportation costs lead the way

The index for final demand services rose 1.1 percent in July, the largest one-month increase since data were first calculated in December 2009.  

Final demand goods up 0.6 percent in July following a 1.2-percent jump in June.

Nearly half of the broad-based advance in July is attributable to margins for final demand trade services, which jumped 1.7 percent. (Trade indexes measure changes in margins received by wholesalers and retailers.)

Core PPI (ex Food, Energy, & Trade Services) rose 0.9% MoM (almost double the expected pace of inflation) sending it up a record 6.1% YoY

Source: Bloomberg

Companies margins are likely to come under serious pressure as the spread between PPI and CPI grows dramatically…

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