Wages are rising faster then Consumer Price Index increases. The economic expansion continues to appear to have fuel being added to it. However, I remain skeptical that there is a strong growth in spending power here.
At each level of the chain -from crude materials to intermediate finished goods to finished good to consumer- each level removes over 1/2 of the price increase.
Since the Great Recession, the Producer Price Index (PPI) has been irrelevant. Whatever price increases occurred – the supply chain simply absorbed. With surging energy prices that is about to change.