Inflation through the supply chain: what are you seeing?

Producer prices feed consumer prices with a lag, and the pipeline tells you where inflation is heading. The current pipeline is full of energy-driven pressure.

Inflation through the supply chain: what are you seeing? — pip movement diagram
How a pip moves the exchange rate

What's your read?

  • the PPI signals you're tracking
  • how they shape your CPI expectations
  • the currencies most exposed to the pipeline
Inflation through the supply chain: what are you seeing? — risk-reward diagram
A risk-reward ratio of 1 to 2

Background: UK producer prices and US producer prices.

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