This morning’s Chicago PMI number came in at a remarkably bullish 68.6, crushing expectations.
And while markets moved higher immediately ahead of and following the release, they have since fallen back.
While that fall has been modest, it’s likely the product of some serious concerns about one statistic within the data set: Prices paid.
Prices paid surged to their highest level since 2008, indicating rapidly increasing inflation.
Heard this story before? That’s because it was pretty much the same in the big Philly Fed beat earlier this month.
Markets are now seriously concerned about commodity price inflation, and recent data is doing nothing to assuage those fears.
Just look at the chart of prices paid from the Chicago PMI. The jump is real.
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