Chart showing 6m % change in ex food/energy producer prices by stage of production flow. Since 2010. Stage 1, 7.1%, 77.1%-ile Stage 2, 11%, 86.4%-ile Stage 3, 4.9%, 73.3%-ile Stage 4, 5.2%, 85.3%-ile Note: Stages 1-3 all +10% ann. MoM in Feb, Stage 4 +8% ann.
PPI is showing a significant and broad-based inflation impulse that's going to get increasingly difficult for the Fed to ignore. And remember, this is well before any effects from Iran or even from fiscal stimulus this year.