PPI came in stronger than many economists expected today. However, it is no surprise to readers of Mike Panzer’s research.

His work suggests that import prices are a leading indicator of U.S. inflation. Import prices were up 1.5 percent in October, the 4th consecutive monthly advance and largest increase since May.

Inflation_import_prices
Source: Michael Panzner

This suggests that inflation is far from dormant, courtesy of increasing import prices.

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-Jim Rogers

Category: Economy

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2 Responses to “Chart of the Week: Import Prices as a Leading Inflationary Indicator”

  1. cb says:

    Great chart, but it’s not necessarily true that any rise in producer prices are ‘courtesy of import prices.’

  2. Kurt Landefeld says:

    Interesting chart.

    Do we know what fraction of that price spike can be attributed to oil?