Inflation and Recession are Becoming Entrenched

 September PPI report for September

• So-called "core inflation" for finished goods less food and energy came in at 8.4% Y/Y, the highest level since July 1981.
• From the bottom (January 1976) to the top (April 1980) of the 1970s inflation cycle, the rise in the core PPI amounted to 600 basis points (@5.0% to @11.0%).
• Last time the Fed was confronted with a 600+ basis point increase in core inflation, it raised the Federal funds rate by 1400 basis points, not a mere 300; and it took all of six years to finally bring inflation back to earth.
• The inflation rate (brown line) just kept on climbing, rising at an annualized rate of 9.5% during the period.

https://brownstone.org/articles/inflation-and-recession-are-becoming-entrenched/