The Producer Price Index (PPI) surged to an all-time high of 8.3% in its most recent reading, showing that supply/demand imbalances are persisting. This was also the 16th consecutive gain in the PPI, the longest streak on record. While PPI for Final Demand (the Bureau of Labor Statistic’s preferred measure of producer prices) may have a limited history, PPI for Finished Goods (which goes back to 1948) is also extended at a 94th percentile reading of 10.3%. With input costs continuing to surge, it is likely that inflation will remain elevated in the months ahead.
