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 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”

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”

Eurozone Inflation Accelerates in May to New Records, Follows German and Spanish CPI

Eurozone May CPI numbers came in much higher than expectations released Tuesday confirming the soaring German and Spanish inflation reports released the day prior. Energy and food pricing pressures continue to elevate around the world. Eurozone May preliminary CPI +8.1% was versus +7.7% y/y expected. Core CPI +3.8% was higher also +3.5% y/y expected. Germany’s consumer inflation for May was 8.7% from a year ago and the highest reading since German reunification. Analysts predicted 8.1%. advance. Spain’s May CPI also … Continue reading “Eurozone Inflation Accelerates in May to New Records, Follows German and Spanish CPI”

German and Spanish Inflation Soar to Records with Consumer Sentiment at All Time Lows Ahead of ECB Meeting

Energy and food pricing pressures continue to elevate around the world. Germany’s consumer inflation for May was 8.7% from a year ago and the highest reading since German reunification. Analysts predicted 8.1%. advance. We already know people’s sentiment continues to suffer; GfK Consumer Climate Indicator for Germany edged up to -26 heading into June of 2022 from a record low of -26.6 in May. Spain’s May CPI also soared to +8.7% y/y vs +8.3% expected. The ECB meet in 10 … Continue reading “German and Spanish Inflation Soar to Records with Consumer Sentiment at All Time Lows Ahead of ECB Meeting”