Is PPI inflation set to rise further? The Philly Fed Prices Paid Index jumped 8 points in August, to 66.8, the highest since May 2022. This index measures changes in the prices that manufacturers pay for raw materials and supplies. The metric has been in a strong upward trend over the last 12 months. Historically, Philly Fed prices paid have led PPI finished consumer goods prices, one of the main components of PPI. This now signals a further increase in PPI inflation over the next several months all as rate cuts are coming. Producer-level inflation pressures are building.(The Kobeissi Letter)