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Week 20 - 5 Things to Know in Investing This Week Point 3) The PPI Comes in Hot: The PPI is the producer price index, and is a measure of wholesale prices. In general, higher producer prices make their way into higher consumer prices. The April PPI was up 0.5% from last month which was much higher than the 0.3% expected. It also reversed the direction of last month’s decline. The yearly PPI was up 2.2%, also an increase from recent levels (chart below). The Core PPI, which excludes food and energy, was up 0.5% vs last month which was well above the 0.2% expected. Core was up 2.4% vs last year, also an increase from last month. Not only has inflation not subsided, it’s increasing.

Week 20 - 5 Things to Know in Investing This Week Point 3) The PPI Comes in Hot: The PPI is the producer price index, and is a measure of wholesale prices. In general, higher producer prices make their way into higher consumer prices. The April PPI was up 0.5% from last month which was much higher than the 0.3% expected. It also reversed the direction of last month’s decline. The yearly PPI was up 2.2%, also an increase from recent levels (chart below). The Core PPI, which excludes food and energy, was up 0.5% vs last month which was well above the 0.2% expected. Core was up 2.4% vs last year, also an increase from last month. Not only has inflation not subsided, it’s increasing.

PPI Stuck well above the 2% metric desired by the FOMC Wholesale prices moved 0.5% up in April, with core PPI rose 0.4% or 3.1% YoY WAY above analyst estimates Raw materials, services, oil, and goods were all up on the month. PPI does a great job at estimating the supply-side of inflation. If PPI moves up big time, you can be assured that CPI will follow soon after. In recent months, the slow in inflation has been largely attributed to the supply chain returning to normalcy, and costs leveling out for businesses. It appears that trend could be coming to an end. #goodluckhavefunyall #ppi #inflation #oil

The Core Consumer Price Index (CPI) measures the changes in the price of goods and services, excluding food and energy. The CPI measures price change from the perspective of the consumer. It is a key way to measure changes in purchasing trends and inflation. A higher than expected reading should be taken as positive/bullish for the USD, while a lower than expected reading should be taken as negative/bearish for the USD. #vpfx #usa🇺🇸 #dollar #cpi #consumer #forexbroker #forexmarket #forexnews

Two inflation reports released last week, the Consumer Price Index (CPI) and the Producer Price Index (PPI), showed continued inflation progress. Consumer prices were flat in October from the previous month, while the 12-month increase was 3.2%. Both were below market forecasts. Core CPI (excluding food and energy) also moderated, rising just 0.2% in October and 4.0% from a year ago–below forecast. The climb in the annual core CPI was the lowest in two years.5 Producer prices confirmed the disinflationary picture, as wholesale prices declined 0.5% in October (versus a +0.1% forecast). It was the biggest decline in 3 ½ years. Over the last 12 months, wholesale prices rose just 1.3%.

Daily Update 07-12-2024 Producer prices rose in June A measure of wholesale prices increased more than expected in June, raising questions about when the Federal Reserve might be comfortable cutting interest rates. The producer price index (PPI) rose 0.2% last month, according to the Labor Department’s Bureau of Labor Statistics, surpassing economists' expectations of a 0.1% increase. Over the past year, the PPI has climbed 2.6%. The PPI, which tracks the prices producers receive for their goods and services, saw a rise in service prices offsetting a decline in goods prices in June. This latest figure is an improvement from May's revised data, which showed the index was unchanged instead of the initially reported 0.2% decline. The stronger-than-expected PPI reading contrasts with recent data indicating declining inflation, although economists and investors generally prioritize consumer-focused inflation metrics. This report follows Thursday's cooler-than-expected consumer price index (CPI) for June, which revealed headline inflation fell on a monthly basis and now stands at 3% year-over-year. The Federal Reserve's next policy meeting is at the end of July, where rates are expected to remain unchanged. Traders are increasingly focusing on the September meeting as a potential date for the first rate cut. The Fed's preferred inflation gauge, the personal consumption expenditures (PCE) price index, will have its June data released on July 26. This Week's Major U.S. Economic Reports & Fed Speakers, today Friday July 12: Producer price index -June; PPI year over year; Core PPI-June; Core PPI year over year; And Consumer sentiment (prelim) REMEMBER: Bond trading typically impacts the yield on the 10-yr treasury as mortgage rates are tied to the yield. If bond prices increase, yields and rates decrease. If bond prices decrease, yields and rates increase. 10-yr Treasury yield = 4.197% Avg Conv 30-yr fixed rate = 6.85%

US March Producer Price Index (PPI, aka Wholesale Inflation) rose 0.2% vs expected 0.3% creating a mixed inflation picture relative to hot 🥵 CPI US markets futures recover and moving to green from initial deep red following yesterday’s selloff on hot 🔥 March CPI print First time unemployment claims also came in lower than expected suggesting a resilient labor market Next print of the Fed’s preferred inflation gauge, the Personal Consumption Expenditures (PCE) Pruce Index on April 26 may lend further clarity to the Fed on pace and trajectory of rate cuts (if any) in 2024. #markets #futures #cpi #ppi #pce #labormarket #jobs #inflation #fed #ecb #boc #ratecuts

Thursday's producer price inflation inflation provided a little relief after the CPI a day before sent markets reeling. PPI headline and core both rose 0.2% in March, with headline just below consensus and core matching. Some funkiness around energy costs, in which rising commodity prices may not have fed through yet, made this number a little questionable. And the 12-month headline reading hit 2.1%, the highest in 11 months. Stocks were mixed and long-dated yields rose, which I suspect could be after Wednesday's under-the-radar Treasury report showed the deficit surpassed $1 trillion only halfway through the fiscal year.

The Producer Price Index (PPI), which measures the average change of selling prices received by domestic producers over time, rose 0.1% in July. Additionally, the year-over-year PPI increase of 2.2% was down significantly from its 2.7% value in June. Economists predict this decrease to further pave the way for a September Fed rate cut.

In October 2023, the Consumer Price Index (CPI) rose 3.1% on a year-over-year basis, down from a 3.8% gain in September. The year-over-year deceleration was largely a result of lower prices for gasoline (-7.8%) in October. Excluding gasoline, the CPI rose 3.6% in October, following a 3.7% increase in September. Consult our latest article for more information: https://lnkd.in/dximZyYD.