I have not looked at the underlying numbers. How can we spin this as a good thing? Thank you for your attention to this matter.

BREAKING: December PPI inflation comes in at 3.0%, above expectations of 2.7%.

Core PPI inflation unexpectedly RISES to 3.3%, above expectations of 2.9%.

Core PPI inflation is now at its highest level since July 2025.

PPI inflation is running hotter than expected.

— The Kobeissi Letter (@KobeissiLetter) January 30, 2026

Some of this is being driven by the AI craze.

Look at the price for anything computer related.

RAM, processors, SSDs/hard drives, graphic cards, etc. have skyrocketed in price over the last few months. There will be yet another price increase pretty much across the board on 2-1.

Not only has this caused the price of computers to skyrocket, but availability is becoming a real problem. Manufacturers of the components are diverting almost all of their production for the AI hardware because that is where the real money is right now.

And this doesn't just affect PCs/laptops. It effects anything with a computer in it which is now pretty much everything.

People who think you must temper a growing and glowing economy by raising rates because muh inflation!

Price increases related to economic growth, solid real economic growth, is not inflation.

People have tried to dumb down the economy to overused and misapplied terminology and concepts.

Rapier108 said:

---

Some of this is being driven by the AI craze.

Look at the price for anything computer related.

RAM, processors, SSDs/hard drives, graphic cards, etc. have skyrocketed in price over the last few months. There will be yet another price increase pretty much across the board on 2-1.

Not only has this caused the price of computers to skyrocket, but availability is becoming a real problem. Manufacturers of the components are diverting almost all of their production for the AI hardware because that is where the real money is right now.

And this doesn't just affect PCs/laptops. It effects anything with a computer in it which is now pretty much everything.

---

My 11 year old son is building his own computer, so he has been hit hard trying to save up money for the various parts.

Dad had to step in and help him pay for his most recent part.

Money supply peaked again this month to highest levels since March 2022. I'm not saying that's the only or even the primary reason for current price increases but it doesn't help.

Silver down 30%, gold down 10% today. Dollar strengthening. What a weird day.

Looks like the guy Trump picked to lead the Fed has garnered a lot of confidence.

I might just for fun go back and look at the report to see what industries were inflating vs not. Like others have said the vast majority of this was likely tech and that inflation has been way higher than 3%

Not sure why this is even a big deal. It's the new normal. People need to accept that.

We aren't getting back to 2.0%.

flown-the-coop said:

---

People who think you must temper a growing and glowing economy by raising rates because muh inflation!

Price increases related to economic growth, solid real economic growth, is not inflation.

People have tried to dumb down the economy to overused and misapplied terminology and concepts.

---

That's some serious goaltending there. Increases in prices are the definition of inflation whether you like it or not. You can say it is a good thing because of growth which is a different issue but it is eroding the purchasing power of Americans just like inflation from 2021-25.

Kansas Kid said:

---

flown-the-coop said:

---

People who think you must temper a growing and glowing economy by raising rates because muh inflation!

Price increases related to economic growth, solid real economic growth, is not inflation.

People have tried to dumb down the economy to overused and misapplied terminology and concepts.

---

That's some serious goaltending there. Increases in prices are the definition of inflation whether you like it or not. You can say it is a good thing because of growth which is a different issue but it is eroding the purchasing power of Americans just like inflation from 2021-25.

---

So prices should never change? I think they have a term for that too. There may be a term for when prices decline.

What exactly are you getting at?

You want to piss on a booming economy and I am the one goaltending? The 2% is a made up number regardless and attempts to jack rates to manage to it are bound to fail, as evidenced by Jerome Powell.

You may not agree with that approach but if I am goaltending then I am doing it with a team of players that include icons in economics, like Kidlow, Laffer, guys named Kevin and even DJT himself.

flown-the-coop said:

---

Kansas Kid said:

---

flown-the-coop said:

---

People who think you must temper a growing and glowing economy by raising rates because muh inflation!

Price increases related to economic growth, solid real economic growth, is not inflation.

People have tried to dumb down the economy to overused and misapplied terminology and concepts.

---

That's some serious goaltending there. Increases in prices are the definition of inflation whether you like it or not. You can say it is a good thing because of growth which is a different issue but it is eroding the purchasing power of Americans just like inflation from 2021-25.

---

So prices should never change? I think they have a term for that too. There may be a term for when prices decline.

What exactly are you getting at?

You want to piss on a booming economy and I am the one goaltending? The 2% is a made up number regardless and attempts to jack rates to manage to it are bound to fail, as evidenced by Jerome Powell.

You may not agree with that approach but if I am goaltending then I am doing it with a team of players that include icons in economics, like Kidlow, Laffer, guys named Kevin and even DJT himself.

---

First, I agree with people like Kidlow and Laffer the vast majority of the time. You are the one that says price increases aren't inflation which I guarantee Kudlow, Laffee and Kevin wouldn't say no matter what the cause is. They may argue it is worth the price although at least Kudlow and Laffer historically wouldn't have.

Kudlow on inflation
"Unfortunately, inflation is the cruelest tax of all."

https://www.nationalreview.com/kudlows-money-politics/cruelest-tax-all-larry-kudlow/

Laffer also isn't a big fan of general inflation
When you get these inflations up, it destroys the capital market, it destroys values, it creates huge capital gains that are taxable, that are just to offset inflation," Laffer explained.

"It has a lot of negative impacts on the society and will lead to a lot slower growth, if not a deep recession," he continued.

https://www.foxbusiness.com/economy/inflation-long-term-problem-if-fed-doesnt-wake-up-smell-the-coffee-laffer

But you use it as a negative and subscribe that it has to be managed to some arbitrary level like 2%.

When you *******ize the term long enough it fails to meaningful. Like racism.

The average joe is not programmed to understand that "inflation" of >2% but due to a booming economy is a good thing.

That leads to further dumb theory that says if inflation is over that 2% even if economic growth is fantastic that we should raise rates to throttle the economy. You do NOT have to do it so programmatically, which was has been Powell's and even some before hims biggest issue.

Keeping rates low or cutting them can keep a boom going and juice it further. That is what Trump is looking for. And it's what Kudlow is currently talking about.

So, however you want to look at it if you want to call everything on inflation, just understand not all inflation is bad, it's opposite is almost never good, and even the status quo is not desirable.

flown-the-coop said:

---

But you use it as a negative and subscribe that it has to be managed to some arbitrary level like 2%.

When you *******ize the term long enough it fails to meaningful. Like racism.

The average joe is not programmed to understand that "inflation" of >2% but due to a booming economy is a good thing.

That leads to further dumb theory that says if inflation is over that 2% even if economic growth is fantastic that we should raise rates to throttle the economy. You do NOT have to do it so programmatically, which was has been Powell's and even some before hims biggest issue.

Keeping rates low or cutting them can keep a boom going and juice it further. That is what Trump is looking for. And it's what Kudlow is currently talking about.

So, however you want to look at it if you want to call everything on inflation, just understand not all inflation is bad, it's opposite is almost never good, and even the status quo is not desirable.

---

Please show me where I called for a 2% rate. I highlights it erodes the value of what people hold and agree it is a cruel hidden tax. Please show me where Laffer and Kudlow say any kind of inflation is a good thing.

Price increases in individual items due to high demand is ok but that is a lot different than inflation which is the general increase in all goods and services. As for what I would do with rates, it starts with taking the Fed out of setting rates altogether and let the market decide rates. Interest rates are the most important prices in the economy and like all other government controlled prices, they lead to massive problems compared to any minor benefits. No Fed has ever done a good job because it is impossible for any individual to do it right.

So at what level do we set all the prices and then how do we agree to never change them?

I am struggling to understand how we are to address the issue of inflation.

According to one of the people you hold in high regard. PS. I agree with him that growth isn't a cause of inflation. The real cause is excessive money printing and fiscal stimulus which Trump and essentially all members of Congress support which is why we will never address the deficit until the bond market forces the issue.

"Economic growth does not cause inflation." - Larry Kudlow 1/29/2026.
https://www.americafirstpolicy.com/issues/larry-kudlow-growth-lowers-prices-and-the-fed-refuses-to-listen

The notion that the economy is booming is a unique viewpoint. The vast majority of Americans don't see it that way, with the consumer confidence index recently dropping to the lowest level in 12 years.

Quote:

---

U.S. consumer confidence slumped to the lowest level since 2014 in January, sinking below pandemic-era lows as Americans are concerned about the labor market.

"Confidence collapsed in January as consumer concerns about both the present situation and expectations for the future deepened," said Dana M. Peterson, chief economist of The Conference Board. "All five components of the Index deteriorated, driving the overall Index to its lowest level since May 2014 (82.2), surpassing its COVID-19 pandemic depths."

https://www.foxbusiness.com/economy/consumer-confidence-plunges-lowest-level-more-than-decade

---

Affordability is a huge issue. Any politician looking past that and trying to spin everything as hunky-dory is whistling past the graveyard. Trump knows it, and it's why he's acting more like a Democrat these days with a call for a one year cap on credit card interest rates and trying to tell other businesses that they must lower their prices.

2% inflation has been a longstanding target for good reasons. You don't want deflation, but you also don't want moderate inflation or higher either because it destroys purchasing power. I don't buy any attempt to suddenly redefine 3% inflation as "good" just because Trump is in office. Hopefully they can work it down toward that 2% target.

Kansas Kid said:

---

According to one of the people you hold in high regard. PS. I agree with him that growth isn't a cause of inflation. The real cause is excessive money printing and fiscal stimulus which Trump and essentially all members of Congress support which is why we will never address the deficit until the bond market forces the issue.

"Economic growth does not cause inflation." - Larry Kudlow 1/29/2026.
https://www.americafirstpolicy.com/issues/larry-kudlow-growth-lowers-prices-and-the-fed-refuses-to-listen

---

One of the big enablers to low inflation is high productivity. It allows you to increase people's compensation every year without passing along price increases to customers because you're offsetting it with efficiency. You can keep your unit cost relatively stable. We lived in that world for several decades until this latest round of inflation, caused by a simultaneous supply-side shock from covid coupled with government spending increases under Trump1 and then blown-out-of-the-water by Biden.

Our government largess has grown so large that you now have many people receiving money and spending it, without actually producing anything. Trump and team are trying to tackle that to a limited degree with spending reductions. Much better attempt than Biden but still not enough. It's not his fault solely at all. Even the broader R party doesn't have the guts to cut spending to the level that's required.

We are likely looking at a new normal of higher than target inflation, and the consequences won't be good.

Kansas Kid said:

---

According to one of the people you hold in high regard. PS. I agree with him that growth isn't a cause of inflation. The real cause is excessive money printing and fiscal stimulus which Trump and essentially all members of Congress support which is why we will never address the deficit until the bond market forces the issue.

"Economic growth does not cause inflation." - Larry Kudlow 1/29/2026.
https://www.americafirstpolicy.com/issues/larry-kudlow-growth-lowers-prices-and-the-fed-refuses-to-listen

---

So you have gone from saying I was goaltending to now citing the concept I was referring to. Economic growth is going to correlate with higher demand almost certainly outpacing supply which we all know such conditions absent outside influence lead to higher prices, or inflation.

I actually listened to Kudlow not run to AI for things I think make my point. Kudlow was getting at rise in prices does not mean the fed needs to temper the economy with higher rates because they think those rise in prices is bad because inflation is bad.

But maybe take a breath as you have to be dizzy from the circle you walked in.

If 2% is better than 3%, then 1% should be the goal. Or 1.5%?

You think 2% is right and that's fine it seems like a cool number. You say 3% that Trump is okay with is too high. Why?

What things will result from 3% vs 2% and why is it so much worse that we would want to throttle back the economy in order to get to 2%?

Completely incorrect. Economic growth is the real growth in goods and services. It is not a measure of price, it's a measure of stuff, that stuff being goods and services. If it increases, it will be non inflationary or even deflationary. That's what Kudlow is saying. Inflation, as Milton Friedman said is always 100% monetary.

Friedman: "Inflation is always and everywhere a monetary phenomenon, in the sense that it is and can be produced only by a more rapid increase in the quantity of money than in output."



Here is an explanation by CATO if you care to get educated on economic growth and inflation:

https://www.cato.org/policy-report/november/december-1999/does-growth-cause-inflation

flown-the-coop said:

---

Kansas Kid said:

---

According to one of the people you hold in high regard. PS. I agree with him that growth isn't a cause of inflation. The real cause is excessive money printing and fiscal stimulus which Trump and essentially all members of Congress support which is why we will never address the deficit until the bond market forces the issue.

"Economic growth does not cause inflation." - Larry Kudlow 1/29/2026.
https://www.americafirstpolicy.com/issues/larry-kudlow-growth-lowers-prices-and-the-fed-refuses-to-listen

---

So you have gone from saying I was goaltending to now citing the concept I was referring to. Economic growth is going to correlate with higher demand almost certainly outpacing supply which we all know such conditions absent outside influence lead to higher prices, or inflation.

I actually listened to Kudlow not run to AI for things I think make my point. Kudlow was getting at rise in prices does not mean the fed needs to temper the economy with higher rates because they think those rise in prices is bad because inflation is bad.

But maybe take a breath as you have to be dizzy from the circle you walked in.

---

No. You are saying PPI increasing is ok because the economy is doing great. That is the exact opposite of what I and Kudlow are saying. He is saying inflation isn't caused by economic expansion which is the opposite of you.

flown-the-coop said:

---

So at what level do we set all the prices and then how do we agree to never change them?

I am struggling to understand how we are to address the issue of inflation.

---

You never set rates. You let the market decide what the cost of money is in the form of inflation. If inflation starts to run hot, interest rates will trend upward automatically throttling excess investments and if it is running low, rates come down and magically encourage more borrowing/investing. It is amazing how well the invisible hand works when it is allowed to work.

Perfectly fine with that approach. Believe Trump has indicated as much as well. I think his biggest complaint is that he is going to be held responsible for the economy, he has the responsibility to set the economic policy (some input from Congress I suppose) and if rates are going to be set by "his" government then he should get a say.

Hard to argue with that. Trump may oversimplify it, but sometimes that's best. Because the opposite is over complicating. See below.

Regarding target inflation, economic growth, and such… some of yall get way too text book on things and skip over how things actually work and interplay. And folks oversubscribed to their economic icons.

How can you be a real person?

YouBet said:

---

Not sure why this is even a big deal. It's the new normal. People need to accept that.

We aren't getting back to 2.0%.

---

This like people stating they want 0% unemployment. No you don't.

Careful, after Trump calculating prescription price decreases he may start pushing for negative unemployment…

If there is one thing every President of both parties has wanted, it is lower interest rates. The only somewhat of an exception was Reagan who understood what needed to be done to break the back of inflation).

Places where the President (or equivalent) has had the ability to essentially set rates and their average annual inflation rate for the last 20 or so years include
Turkey over 20%
Argentina 200%
Venezuela well north of 400%
Eritrea 10%

This is why the executive is the last person that should set interest rates. I know of zero cases in history where it didn't lead to high, sustained interest rates but I'm sure you will say Trump will not do that because he is too smart. That sounds just like the liberals that say our form of Communism/Socialism will work.

Except Trump has a bit more business acumen than your average Eastern European / S American Quasi-Dictator.

I get what you are saying, but again I think you do fail to see there are some differences here.

It's economics not business. Business acumen also doesn't make you a restrained person.

flown-the-coop said:

---

Except Trump has a bit more business acumen than your average Eastern European / S American Quasi-Dictator.

I get what you are saying, but again I think you do fail to see there are some differences here.

---

The guy loves debt a lot as shown by his 6 bankruptcy filings in his businesses (some accounts say 4 because they lump his three Atlantic City ones into a single filing) and you are going to say he is restrained and has perfect business sense?

hph6203 said:

---

It's economics not business. Business acumen also doesn't make you a restrained person.

---

And this isn't even business. It's politics.

MemphisAg1 said:

---

Trump and team are trying to tackle that to a limited degree with spending reductions.

---

What spending reductions? I still see bloated budgets that grow the deficit

Kansas Kid said:

---

flown-the-coop said:

---

So at what level do we set all the prices and then how do we agree to never change them?

I am struggling to understand how we are to address the issue of inflation.

---

You never set rates. You let the market decide what the cost of money is in the form of inflation. If inflation starts to run hot, interest rates will trend upward automatically throttling excess investments and if it is running low, rates come down and magically encourage more borrowing/investing. It is amazing how well the invisible hand works when it is allowed to work.

---

But our people will do socialism better than the market because they are smarter, wiser, etc….

It never has worked and never will.

Oh lord, your the "debt is evil" and "bankruptcies are Satan" type.

Plenty of very, very successful people have been through bankruptcies, many more have come very very close.

To just paint a Scarlett BK on someone's chest seems a bit hypocritical since we are pro law and order and well like it or not they are provided for under the law.

The were macro factors at play regarding Atlantic City and to ignore those is either TDS or not knowing your history.

And if you ever work in real estate development, BKs are worn like a grand champion belt buckle. Double champion if you work on O&G.

I would question the business acumen of anyone who judged someone one simply on the stats you laid out.

Trump isn't a fiscal conservative, so his liberal monetary/fiscal policy will never garner a fiscally conservative result.

"Better than Biden/Harris"? Yep. Not a hard thing to be. Best we can do is hope he's kept a little in check, ride it out, and get an actual conservative in for '28 (Vance? Desantis? Rubio?).