This is why we have had a market correction in recent days 🚨⬇️
The #US PPI numbers are out and they're MUCH higher than expected! Headline PPI YoY: 3.3% (exp 2.5%, prev 2.3%).
Now let me explain why this is so terrible for inflation.
#PPI = Producer Price Index. It's basically the wholesale price of goods.
#cpi (Consumer Price Index) The common gauge for inflation, usually lags PPI by 1-6 months. (Approximately 2 months for groceries, approximately 3-6 months for manufactured goods).
This means that in 2 Months it is very likely that #Inflation will spike significantly as producers pass prices onto consumers.
