The PPI report showed strong cost-push inflationary pressures.
The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.1 percent in November on a seasonally adjusted basis, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months, the all items index increased 1.1 percent before seasonal adjustment.
Inside the data we find that the biggest rise was in fuel oil (diesel, really), gasoline and electricity, while natural gas was down big. Transportation costs (services) were also up large.
The PPI data showed continuing big price increases, yet they’re not being passed through to consumers.
Beware margin compression – or outright collapse.