Inflation Pressures Heat Up Even in Services
There is still the theme that some of it is just temporary.
Across the US service sector, “cost burdens soared once again, with the rate of input price inflation the fastest since the survey began in 2009, according to the IHS Markit U.S. Services PMI this morning. “And the rate of increase has now accelerated for three successive months,” it said.
“Firms largely passed on higher costs to clients through a marked rise in charges,” it said, meaning that the resistance to higher prices appears to have faded, and companies get away with raising prices without losing customers.
“Service providers recorded a steep increase in selling prices during January,” it said amid “strong client demand and a spike in input prices.”
This article first appeared on Wolfstreet.com on February 3, 2021.
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