The producer price index (PPI), which measures the percent change in price of unfinished products down the supply chain and commodities has been positive throughout 2017, at a percent increase of around 2-4% y/y depending on the exact metric. As this has been negative to about 2% through 2015-2016, we could be in for some significant inflationary pressures moving forward, as this is a good indicator of CPI changes.
As the republican tax plan is in full effect and people and businesses are provided increases in income,this should further compound the problem. The fed may have no choice but to more aggressively administer rate hikes, to prevent the economy from overheating.
You can take a look at the stats here: https://data.bls.gov/pdq/SurveyOutputServlet?request_action=wh&graph_name=WP_ppibrief
Submitted January 21, 2018 at 09:04AM by InvestingLifeSavings http://ift.tt/2Dn5ehM
