Many were fearful of a repeat of last month's debacle delay (and there were rumors of a softer PPI print leaked earlier today)
The rumors were wrong as April Producer Prices exploded 6.2% YoY (well ahead of the 5.8% expected) which was clearly impacted by the base effect of last year's collapse, but even sequentially, the PPI print was shockingly hot, rising 0.6% MoM (double the +0.3% expected). Excluding food and energy, so-called core PPI advanced even more, or 0.7%.
That was the biggest YoY jump on record:"There is more inflation coming," Luca Zaramella, chief financial officer at Mondelez International Inc., said on the food and beverage maker's April 27 earnings call."The higher inflation will require some additional pricing and some additional productivities to offset the impact."
jumped 0.7% from the prior month and increased 4.6% from a year earlier.
Michael Hsu, chief executive officer at consumer-product maker Kimberly-Clark Corp., said in April that the maker of Scott toilet paper and Huggies diapers is "moving rapidly especially with selling price increases to offset commodity headwinds."
Digging below the surface further, ex-food, energy, and trade, producer prices soared 4.6% YoY, the most on record also.