{"id":54020,"date":"2020-07-08T06:40:32","date_gmt":"2020-07-08T11:40:32","guid":{"rendered":"https:\/\/olduvai.ca\/?p=54020"},"modified":"2020-07-08T06:40:39","modified_gmt":"2020-07-08T11:40:39","slug":"seems-counter-intuitive-in-this-crisis-inflation-heats-up-for-services-firms-and-theyre-able-to-pass-it-on-via-higher-prices","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=54020","title":{"rendered":"Seems Counter-Intuitive in This Crisis: Inflation Heats Up for Services Firms, and They\u2019re Able to Pass it on via Higher Prices"},"content":{"rendered":"\n

Seems Counter-Intuitive in This Crisis: Inflation Heats Up for Services Firms, and They\u2019re Able to Pass it on via Higher Prices<\/a><\/h3>\n\n\n\n

Even manufacturers, after months of crushed commodities prices, experience inflation and are able to pass it on. Stimulus money the government and the Fed have thrown around by the trillions.<\/strong><\/p>\n\n\n\n

It seems somewhat counter-intuitive in this crisis that companies in the services and non-manufacturing sectors \u2013 which dominate the US economy \u2013 would report higher input prices and higher sales prices. And there are now also smaller pricing pressures cropping up in the manufacturing sector.<\/p>\n\n\n\n

\u201cInflationary pressure returned as both input prices and output charges rose for the first time since February, with both increasing at solid rates,\u201d reported IHS Markit<\/a> this morning in its Services Purchasing Managers Index (PMI) for June.<\/p>\n\n\n\n

PMIs are based on responses from executives about their own companies \u2013 if particular activities are higher, unchanged, or lower in the current month than they\u2019d been in the prior month. No quantitative measures or dollar amounts are involved.<\/p>\n\n\n\n

\u201cInflationary pressures intensified for the first time since February at the end of the second quarter, as both input prices and output charges increased,\u201d IHS Markit added in its Services PMI.<\/p>\n\n\n\n

\u201cCompanies registered a solid rise in cost burdens as some suppliers hiked prices following the resumption of operations at service providers. The rate of input price inflation was the fastest since February 2019,\u201d it said.<\/p>\n\n\n\n

\u201cIn response to higher input costs, firms partially passed on higher supplier prices to clients through greater selling prices. The increase was solid overall and the sharpest for 16 months,\u201d it said.<\/p>\n\n\n\n

\u2026click on the above link to read the rest of the article\u2026<\/p>\n","protected":false},"excerpt":{"rendered":"

Seems Counter-Intuitive in This Crisis: Inflation Heats Up for Services Firms, and They\u2019re Able to Pass it on via Higher Prices Even manufacturers, after months of crushed commodities prices, experience inflation and are able to pass it on. Stimulus money the government and the Fed have thrown around by the trillions. It seems somewhat counter-intuitive […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[426,13127,3650,4254,4255],"class_list":["post-54020","post","type-post","status-publish","format-standard","hentry","category-economics","tag-inflation","tag-stimulus-spending","tag-us-federal-reserve","tag-wolf-richter","tag-wolfstreet"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/54020","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=54020"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/54020\/revisions"}],"predecessor-version":[{"id":54021,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/54020\/revisions\/54021"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=54020"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=54020"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=54020"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}