The Producer Price Index is out for March and its feeling hot, hot, hot. “Core” PPI Final Demand is up to 2.7%, the highest since November 2011.
This guarantees a rate hike from The Fed’s Open Market Committee (FOMC).
PPI Final Demand less food and energy YoY is noteworthy since it is the highest since November 2011, shortly before Core PCE YoY hit 2%, the Fed’s target inflation rate.
If we just look at PPI Final Demand, we see it is growing at 3% YoY and at the same rate as early 2012 when Core PCE YoY growth last exceeded 2%.
And yes, the trend is definitely hot, hot, hot.