US Producer Price Inflation First Decline in Over Two years with 16.7% Fall in Gasoline Prices

US Producer price inflation for July fell in much the same way as July consumer inflation released the day before. For the month PPI fell 0.5% (exp +0.3%) after the 1.1% increase in June. Core PPI, which excludes food and energy, rose 0.2% (exps 0.4%) after the 0.4% increase in June. On an annual basis US July PPI final demand +9.8% y/y vs +10.4% expected and prior +11.3% Core, Ex-food and energy +7.6% y/y vs +7.6% expected. July 2022 PPI … Continue reading “US Producer Price Inflation First Decline in Over Two years with 16.7% Fall in Gasoline Prices”

Goldman Sachs Does Not Expect Much More Downside in US Core CPI

Goldman Sachs issued a note after a lower-than-expected consumer inflation report for July saw the USD fall and stock markets rally sharply Wednesday. US consumer inflation hit +8.5% y/y vs +8.7% expected and Core CPI fell to 5.9% y/y vs 6.1% expected and 5.9% prior. CPI in July stalled m/m 0.0% m/m vs +0.2% expected and +1.3% prior. Core CPI rose +0.3% m/m vs +0.5% expected and +0.7% prior. GS in their note cited four reasons they believe Core inflation … Continue reading “Goldman Sachs Does Not Expect Much More Downside in US Core CPI”

U.S. Peak Inflation Hopes After July CPI Flat 0.0% m/m Down from+1.3% in June

US consumer inflation hit +8.5% y/y vs +8.7% expected. Core CPI fell to 5.9% y/y vs 6.1% expected and 5.9% prior. CPI in July stalled m/m 0.0% m/m vs +0.2% expected and +1.3% prior. Core CPI rose +0.3% m/m vs +0.5% expected and +0.7% prior. With the pullback in oil prices CPI energy -4.6% vs +7.5% prior with Gasoline -7.7% vs +11.2% prior. Despite the noise inflation is uncomfortably high, an example owners’ equivalent rent portion of CPI +5.8% y/y, … Continue reading “U.S. Peak Inflation Hopes After July CPI Flat 0.0% m/m Down from+1.3% in June”

US Consumer Inflation Expectations for Year Ahead Fall to Lowest in Five Months in July

US consumer inflation expectations for the year ahead fell to 6.2% in July of 2022 the Federal Reserve Bank of New York said Monday. This was the lowest reading in five months and down from a record high of 6.8% in June. The bank’s July 2022 Survey of Consumer Expectations shows substantial declines in short-, medium- and longer-term inflation expectations. Expectations fell sharply for gas (-4.2 percentage points to 1.5%, the second largest drop ever) and food price changes (-2.5 … Continue reading “US Consumer Inflation Expectations for Year Ahead Fall to Lowest in Five Months in July”

US Producer Price Inflation Continues Elevated in June PPI +1.1% m/m +11.3% y/y

US Producer price inflation for June continues elevated at a rapid pace, a long way from the Central Bank transitory mantra. US June PPI +11.3% y/y vs +10.7% expected, Prior was +10.8% y/y. June PPI month on month increased 1.1% (consensus 0.9%) versus a prior revised increase of 0.9% (from 0.8%). Core PPI, which excludes food and energy, rose 0.4% (consensus 0.5%) versus the prior revised increase of 0.6% (from 0.5%) June 2022 PPI The Producer Price Index for final … Continue reading “US Producer Price Inflation Continues Elevated in June PPI +1.1% m/m +11.3% y/y”

U.S. Consumer Inflation Soars to Another 40 Year High 9.1% as Food and Energy Prices Soar

US consumer inflation hit +9.1% y/y vs +8.6% expected. Prices for energy jumped 41.6% from a year earlier, the most since April of 1980 and food prices jumped 10.4%, the largest 12-month increase since February of 1981. Shelter costs also accelerated higher. Real Earnings are declining at a rapid rate. CPI in June rose m/m +1.3% vs +1.1% expected and +1.0% prior expected. Core CPI rose 0.7% (consensus +0.6%). US interest rate Futures after the report are pricing in a … Continue reading “U.S. Consumer Inflation Soars to Another 40 Year High 9.1% as Food and Energy Prices Soar”

Turkey’s Inflation Rate Surged to 78.6% in June with Energy Soaring 151.3% and Food Prices 94%

Turkey has seen prices rise and rates not seen for twenty-five years with the Turkish Lira collapse sending imported goods sky high. Turkish annual inflation accelerated for a 13th straight month to 78.6% in June. Staples such as transportation and food are rising at an even faster rate. Energy prices soared 151.3% from a year earlier, while food inflation reached almost 94%.  The International Monetary Fund estimates Turkey will have the world’s highest inflation this year after Venezuela, Sudan and … Continue reading “Turkey’s Inflation Rate Surged to 78.6% in June with Energy Soaring 151.3% and Food Prices 94%”

German Inflation Pace Slows While Spanish Inflation Soars Past 10% in June

Inflation continues to run rampant throughout the world. Energy and food pricing pressures continue to elevate around the world. The effect is showing some variance by location. Germany’s consumer inflation for June slowed more than expected to 7.6% from 7.9% in May which was the highest reading since German reunification. Figures compare with market forecasts of 8%. Spain however saw annual inflation jump to 10.2% in June of 2022 from 8.7% in May, much higher than market forecasts of 9% … Continue reading “German Inflation Pace Slows While Spanish Inflation Soars Past 10% in June”

US Producer Price Inflation Continues Elevated in May PPI +0.8% m/m +10.8% y/y

US Producer price inflation for May rose +10.8% y/y vs +10.9% expected lower than the prior was +11.0% y/y continues elevated at a rapid pace, a long way from the Central Bank transitory mantra. PPI month on month for May was 0.8% (consensus 0.8%), compared to a downwardly revised 0.4% (from 0.5%) for the prior month. Core PPI, which exclude food and energy, was 0.5% for May (consensus 0.6%) compared to a downwardly revised 0.2% for the prior month’s reading … Continue reading “US Producer Price Inflation Continues Elevated in May PPI +0.8% m/m +10.8% y/y”

U.S. Inflation Rocks To 4O Year High as Food and Energy Prices Soar

US consumer inflation continues to rise, prices for energy jumped 34.6% from a year earlier, the cost of groceries rose 11.9% on the year. Shelter costs also accelerated higher. Real Earnings are declining at a rapid rate. CPI in May rose+1.0% vs +0.7% expected m/m. Core CPI rose 0.6% (consensus +0.5%). The dollar rose to a three-week high after the inflation data release. The bond and stock markets began selling off on inflation fears yesterday. 10-year yields rising over 3%. … Continue reading “U.S. Inflation Rocks To 4O Year High as Food and Energy Prices Soar”