PPI-CPI gap highlights mounting pressure across the economy

Gregor Horvat Wavetraders

Interesting observation between PPI and CPI.

PPI bottomed almost 2 years before CPI did, which may suggest that producers have been under pressure much longer than consumers.

Companies likely absorbed higher costs before slowly passing them on to consumers later.

Now with higher energy prices again, producers may struggle to absorb those costs any longer, which increases the risk that consumers start feeling even more pressure, especially if policymakers don’t act on time.

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Author

Gregor Horvat

Wavetraders

Experience Grega is based in Slovenia and has been in the Forex market since 2003.

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