"PPI Update: Significant March Seasonal Adjustments and 3-Month Rate Surges"

The Producer Price Index (PPI) data for March showed significant seasonal adjustments, with the not-seasonally adjusted PPI jumping by 7.9% annualized, the highest since June 2022. The three-month rates for PPI all increased, indicating a trend of higher lows and higher highs, which could impact future inflation data. The seasonal adjustments in March were notably larger than in previous years, likely influenced by pandemic-related distortions. The volatility in PPI data and the potential for self-correction in seasonal adjustments may lead to surprises in the coming months.