Philly Fed Sees Further Inflationary Pressures

Today's Philly Fed report looks very similar to Empire from earlier this week so has less shock for markets (hence very little reaction in Tsys), but inflationary pressures continued to intensify within the details.

• The prices paid diffusion increased back to just shy of June's 42-year high whilst prices received was the highest since 1974 (47-year), with a net 63% of firms increasing prices on the month.
• In the special questions, firms saw their own prices rising a median 5.3% over the next four quarters, up from 5% when last asked in Aug.
• Employee compensation costs are expected to rise 4.8% over the next four quarters, up from 4.0% in Aug.