<!-- wp:paragraph -->
<p>The Producer Price Index (PPI) for Finished Goods climbed from 10.2% to 11.7% in September, the highest reading since November of 1980 (see chart below).&nbsp; This unprecedented rise in input costs is putting companies in a tough position.&nbsp; They either have to raise their selling prices, let increased costs diminish their bottom line, or some combination of both.&nbsp; It should be noted that while initial price increases were limited to big spikes in just a few goods, inflation has since become more broad based.</p>
<!-- /wp:paragraph -->

<!-- wp:image {"align":"center","id":12658,"sizeSlug":"full","linkDestination":"none"} -->
<div class="wp-block-image"><figure class="aligncenter size-full"><img src="https://ns2020-investech.investech.com/wp-content/uploads/2021/10/PPI.jpg" alt="" class="wp-image-12658"/></figure></div>
<!-- /wp:image -->

<!-- wp:paragraph -->
<p>One piece of evidence that shows the broad-based nature of input cost inflation is the CRB Raw Industrials Index, which tracks 13 of the most basic inputs to industrial production.&nbsp; This index has soared following the economic reopening last year and recently reached a record high reading for the first time in over a decade.&nbsp; And as long as this index continues to make new highs, it’s likely that input prices will continue placing upward pressure on inflation as well.</p>
<!-- /wp:paragraph -->

<!-- wp:image {"align":"center","id":12659,"sizeSlug":"full","linkDestination":"none"} -->
<div class="wp-block-image"><figure class="aligncenter size-full"><img src="https://ns2020-investech.investech.com/wp-content/uploads/2021/10/CRB.jpg" alt="" class="wp-image-12659"/></figure></div>
<!-- /wp:image -->