(June 9 – 14:20 ET) – Don’t be fooled by today’s U.S. Producer Price Index report say the economists at CIBC World Markets Inc. The threat of inflation hasn’t passed, they contend

Although energy prices fell in today’s report, “the devil appears to be in the details,” says CIBC. Gas and heating oil prices were up sharply on the month, but, the economists note, a huge drop in prices for liquefied petroleum gas hid those gains.

“Don’t be fooled into thinking that because producer prices were unchanged for the month that there is no longer a threat of an energy-driven spike in PPI,” warns CIBC, “The supply conditions for crude, and especially gasoline, are such that energy prices will remain on the rise for the rest of the summer.
-IE Staff