PPI Recap

Hotter Than a Mexican Cartel

• The January inflation preview from February 12^th listed an implied January core PCE figure of .2% MoM.

• This was subsequently upsized on February 21^st to .4% MoM, which would generate a politically inexpedient YoY level of 3.08% for core PCE.

• Today’s PPI report, which came in at a scorching .8% MoM vs. a .3% expectation,