Let's Go Brandon!

This one has been in the tabs for a while, Capt. Ed at Haut Hair points out Another new inflation record: Producer price index hits 9.6% in November

Joe Biden’s economy broke two records in November, not one, but don’t expect to hear much bragging at the White House today on either. The two key measures of inflation rose higher than expected, as wholesale prices rose almost by double digits last month:

Wholesale prices increased at their quickest pace on record in November in the latest sign that the inflation pressures bedeviling the economy are still present, the Labor Department reported Tuesday.

The producer price index for final demand products increased 9.6% over the previous 12 months after rising another 0.8% in November. Economists had been looking for an annual gain of 9.2%, according to FactSet.

Excluding food, energy and trade services prices rose 0.7% for the month, putting core PPI at 6.9%, also the largest gain on record. Estimates were for respective gains of 0.4% and 7.2%, meaning the monthly gain was faster than estimates but the year-over-year measure was a bit slower.

The Labor Department’s record keeping for the headline number goes back to November 2010, while the core calculation dates to August 2014.

The Bureau of Labor Statistics produces the PPI, for some reason. They also created a chart showing the dramatic increase in the second half of the year

 

Meanwhile, the Bureau of Labor Statistics charts the PPI without food and energy prices, which looks every bit as dramatic: 

Does any of this look “transitory,” in anything but the most literal sense? And even in the very literal sense, what exactly is the condition set to which we’re transiting on this path?

I recall the Carter years of stagflation, which made it virtually impossible for the ordinary person to get ahead, and the absolutely terrible recession that Reagan and Volcker imposed to finally beat it and restore a healthy economy.

As we are now retired, and living on relatively fixed assets, inflation is the greatest threat to our financial well being.