The December Producer Price Index (PPI) was released today. Producer inflation jumped 1.1% in December. Over the last two years, producer prices have increased at a 4.33% annual rate. Over the last six months, producer price inflation is running at a 6.9% annual rate. Producer inflation is accelerating, yet the Federal Reserve is consumed by the risk of deflation. It’s a head scratcher, is it not?
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Jeremy Jones, CFA is the Director of Research at Young Research & Publishing Inc., and the Chief Investment Officer at Richard C. Young & Co., Ltd. Jeremy is a contributing editor of youngresearch.com.