Wholesale Inflation Rose 0.7 Percent in January

Closing Bell

Also a day after a measure of consumer prices showed inflationary pressures persist. This to me is the biggest story really of these past few weeks. I mean, it's causing a positive stock market, so we'll be talking more about it. But that's because another data point today showing that wholesale prices are still elevated, rising by more than expected. Producer prices jumping at 7/10 of a percent last month above economist expectations for the biggest increase since june, economists expecting a gain of oh 0.4% after prices did edge a little bit lower in december and to the end of the year, consumer demand did just kind of trail off there. People got their holiday shopping in early. But producer prices are these wholesale prices, their prices, companies pay for goods. So these price gains are often passed on to the consumer and the data can be a leading indicator as producer prices represent the first price paid on the market for raw materials that go into our goods and services, Producer prices peaking in March of last year, with a gain of 11.6% from a year ago. Three months later, consumer prices peaked with those prices passed along with a gain of 9.1% in June. So just goes to show that the stubbornness of inflation is still sticking for all of our viewers trying to budget at home. And of course, for investors as well.