The Producer Price Index for final demand increased 0.5 percent in April, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. This rise followed advances of 1.6 percent in March and 1.1 percent in February. (See table A.) On an unadjusted basis, final demand prices moved up 11.0 percent for the 12 months ended in April.
The "final demand" 12 month run rate is stuck at 11.0%. I remind you that it has been rising radically through that entire table and is well above The Fed's alleged "target." The claim of "transitory" is proved to be a howling lie by this table, since this is literally a year's worth of "triple the target rate" inflation at the producer level, which then must work its way down to retail.
Food and energy are monsters in everyone's budget, like it or not. Energy is the hydra that wipes out everyone else because it literally is in everything. As I have often observed behind every unit of GDP is a unit of energy; this is a fact and no amount of arm-waving will change it, so if you wish to attack energy sources and consumption you are, by definition, attacking economic output and the economic health of the common American person.
It does not matter how you feel about various energy sources. Mathematics does not care about your feelings, and neither does physics -- and thermodynamics.
What's much worse is that we are seeing 2%+ monthly increases in intermediate demand goods -- and 48% annualized for unprocessed. That too is a more than a year long trend with 12 month annualized prices in excess of fifty percent. Folks, that's a doubling in less than two years and these are unprocessed goods, which means they're yet to work their way through the system.
Don't think "services" are ok either -- they're not, with the price increase running three to four times the so-called 2% "inflation target."
No, folks, it's not slowing down -- at all.