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IPFS News Link • Inflation

A Producer Price Index Inflation Spike Is On The Way Too

•, Mish

PPI: -1.1%
2020 Goods: -2.8%
Services: -0.4%
Energy: -17.3% 
Producer Price Index Month-Over-Month February 2021

April 2020 PPI: 0.5%
April 2020 Goods: 1.4%
April 2020 Services: 0.1%
Energy: 6.0%
Q: Why does Energy have such a small impact on the PPI?
A: The following chart explains. 

Producer Price Index Year-Over-Year April 2020

PPI: -1.5%

Goods: -5.2%

Services: +0.3%

Energy: -30.7%

Producer Price Index Year-Over-Year February 2021

PPI: 2.8%

Goods: 3.4%

Services: 2.5%

Energy: 5.5%

What's Going to Happen?

The year-over-year comparisons in March, April, and May are going to show huge percentage year-over-year jumps, especially April and May due to comparisons vs. the initial pandemic numbers in Spring of 2020.