Core PPI 0.0% m/m vs +0.2% consensus (+2.4% y/y vs. +2.7% consensus). Here’s a picture of instantaneous core measures.
Figure 1: Instantaneous inflation for core CPI (blue), chained core CPI (tan), supercore CPI (pink), PPI core (red), and PCE core (green), per Eeckhout (2023), T=12, a=4. Source: BLS, BEA, Cleveland Fed, and author’s calculations.
It’s tempting to conclude this movement will feed into the CPI inflation, July figures to be released tomorrow, but this is not obviously the case. See this post for discussion of formal econometric analyses of whether PPI leads CPI.
Addendum, 10am PT:
Here’s a picture from Goldman Sachs Economic Research today:
Off topic but this one should give anyone a laugh. You know – I have suggested no one could be dumber than Bruce Hall on climate change but maybe I was wrong as Trump’s comments on that technically challenged interview with Elon Musk was beyond weird:
https://www.msn.com/en-us/news/politics/trump-says-climate-change-means-more-oceanfront-property/ar-AA1oJ8Dr?ocid=msedgdhp&pc=U531&cvid=86107c7a5be5427f9d0922ff737763e7&ei=15
Trump appeared to belittle the threat of global warming during an interview with billionaire Elon Musk on Monday, suggesting its main impact would be on real estate. “You know the biggest threat is not global warming when the ocean’s gonna rise one-eighth of an inch in the next 400 years and you’ll have more oceanfront property. The biggest threat is not that,” said the GOP candidate. Trump then continued the statement adding: “The biggest threat is nuclear warming.”
When does the corporate media step away from reporting on the fire-hose of B.S. and lies coming from Trump and start documenting that Trump is not only mentally unfit but dangerously delusional? https://www.msn.com/en-us/weather/topstories/does-donald-trump-understand-how-the-ocean-works/ar-AA1oJkxG
Trump and Elon do not care that the world is burning up – and think they will be fine living in their opulent bunkers or fleeing the U.S. by skipping out to Venezuela https://www.vanityfair.com/news/story/trump-suggests-hell-flee-to-venezuela-if-harris-wins-the-election
I bet this is all the Faux News crowd is hearing:
“Final demand goods: Prices for final demand goods rose 0.6 percent in July, the largest advance since a 1.1-percent jump in February. Nearly 60 percent of the broad-based increase in July can be traced to the index for final demand energy, which moved up 1.9 percent.”
Now the following sentence is worth noting unless you are a MAGA moron:
https://www.bls.gov/news.release/ppi.nr0.htm
And service prices FELL – which will never be mentioned by Faux News.
https://fred.stlouisfed.org/series/PPIFIS/
Producer Price Index by Commodity: Final Demand
This index fell from June 2023 to July 2024. Now it has risen a wee bit since. Something else you will not hear on Faux News.