Supply Chain Monitor: January PPI
Some commentators have noted that supply-side disinflation may be reaching an end point, but it is also clear that the supply-side pricing pressures of the pandemic era are over.
Some commentators have noted that supply-side disinflation may be reaching an end point, but it is also clear that the supply-side pricing pressures of the pandemic era are over.
Overall industrial production stayed flat year over year in the January data, and shrank by 0.1% month over month.
Overall production inched up, with headline industrial production rising 0.1% month-over-month for a 1% year-over-year increase.
One way we can think about how present inflation is different from the 1970s experience is by looking at the difference in price changes for capital goods.
Today saw the release of the December ISM report, the first real soft data since the Fed confirmed the hiking cycle is over. Overall manufacturing ticked up, contracting at a slower rate than in previous months, suggesting the beginnings of a turnaround.