Print Money: Here It Comes

U.S. economy updates: Gigantic surge in inflation --- Wholesale prices rise 1.6% due to biggest jump in food costs since 1974; construction sees biggest drop since 1984.

1.6% increase in headline PPI is super hot.

But core (ex-food and energy) at 0.2% is super-tame.

So the debate of headline vs. core inflation remains.

Background: Well, this is going to surprise nobody but producer pices are getting more expensive. The official estimate is for a 0.6% rise in producer prices.

The real question is: how will tomorrow's CPI match up, and what does that tell you about margin pressure.