Big surge in US producer prices

[eppur_se_muova]

Source: BBC

Producer prices in the US rose to their highest annual rate since October 1981 in January.

Prices rose 7.4% from January 2007, while they were up 1.0% from December 2007, the Labor Department said.

Monthly core producer prices, which exclude food and energy costs, rose by a greater-than-expected 0.4%.

Producer prices, sometime known as factory gate inflation, show the amount domestic producers receive for their products.

Read more: http://news.bbc.co.uk/2/hi/business/7264984.stm

[phantom power]

1. I get the impression that so far...

businesses have been trying to eat costs, and not pass them up the chain. Generally, people do this to stay competitive, as long as they think high costs are temporary. But eventually, something has to give. We haven't seen the worst of this.