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A 0.5 percent rise in the January Producer Price Index (PPI) has been linked by newspapers to tariff increases and is seen as a potential signal for higher Personal Consumption Expenditures (PCE) consumer inflation.
Alan Reynolds, however, contends that this interpretation is overly simplistic. He notes that goods prices actually fell 0.3 percent, largely due to food and energy components, suggesting that the headline PPI figure does not necessarily portend higher consumer inflation by itself.