Following the far-hotter-than-expected CPI print, analysts expected Producer Prices to extend their acceleration, and they did rising 10.0% YoY in February (vs +9.7% YoY in January), hitting double-digits for the first time since Bloomberg data began.

Also notable is that January's PPI data was revised higher, from +9.7% to +10.0% YoY.

Source: Bloomberg

This is the 21st straight month of MoM rising producer prices, and given the sustained upward pressure from the supply chain and intermediate demand, it doesn't look like a transitory turn any time soon...

Source: Bloomberg

Nearly 40 percent of the February increase in prices for final demand goods can be attributed to the index for gasoline, which rose 14.8 percent.

Prices for diesel fuel, electric power, jet fuel, motor vehicles and equipment, and dairy products also advanced.

In contrast, the index for fresh and dry vegetables decreased 9.4 percent. Prices for beef and veal and for hot rolled steel sheet and strip also moved lower.

PPI final demand services: prices for truck transportation of freight moved up 2.0 percent. The indexes for food and alcohol retailing, machinery and vehicle wholesaling, transportation of passengers (partial), and outpatient care (partial) also rose. Conversely, prices for portfolio management decreased by 4.2 percent. The indexes for guestroom rental; apparel, jewelry, footwear, and accessories retailing; automobile retailing (partial); and residential real estate loans (partial) also declined.

And there appears to be a shortage of everything except financial advisors: prices for portfolio management decreased 4.2%.

Finally, the market is now pricing in 7 rate-hikes for 2022...

Source: Bloomberg

Will today's PPI print push that even higher (and increase the odds of a 50bps hike in May following tomorrow's hike)?