Very quick inflation comment

November data is old news and why I’m not writing a full piece here on PPI and retail sales. I do want to point out though that within PPI, core goods prices were up 3.2% y/o/y and that is before the 5% further increase in the CRB raw industrials index since November. The inflation debate is not settled as I’ll argue again that while service inflation at the consumer level will further slow but goods price deflation is over.

The question with the rising producer price pressures is what can be passed on and what has to be eaten particularly those who need to procure industrial metals.