Business Inflation Expectations Rise

This week's producer price report showed the initial effects of tariffs on steel prices and an unusual jump in business inflation expectations, up 2 tenths to a year-on-year 2.3 percent, may very well also reflect the tariff impact. April's result is the highest in the 7-year history of the survey.

Inflation expectations have until now been stubbornly flat for a Federal Reserve that is looking to push prices higher. Watch on Friday for an update on consumer expectations for inflation which have, like actual consumer prices as evidenced by this week's CPI report, been moving higher though very slowly.