Producer Prices (ex food and energy) jumped 0.4% MoM – the biggest rise since Oct 2014 (and dramatically hotter than the 0.1% rise expected). Rubbing salt into Fed mandate wounds still further is last month’s print was also revised higher and YoY (+0.6%) is the highest since Sep 2015. Across the range of PPI data, all items came hotter than expected in January (despite a 5% drop in Energy) with Food rising most.
Inflation hotting up…
So, inflation is starting to hot up and the jobs data is ‘awesome’ – what is The “data dependent” Fed to do next?
via Zero Hedge http://ift.tt/1VmZmHQ Tyler Durden