Banco de México Raised Rates for 10th Straight Time to 8.50% as Inflation Hits 22 Year Highs

The Mexican Central Bank, Banco de México raised rates for the 10th consecutive rate increase since June of 2021 and second straight by 75 basis points to 8.50% matching the previous two interest-rate moves by the U.S. Federal Reserve. The bank again increasing its forecasts for headline and core inflation forecasts. The size of future rate increases will depend on prevailing conditions, the bank added. Banco de México’s Governing Board decided to raise the target for the overnight interbank interest … Continue reading “Banco de México Raised Rates for 10th Straight Time to 8.50% as Inflation Hits 22 Year Highs”

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”

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”

Chicago Federal Reserve Governor Evans Says Labor Market is Downright Tight

The Chicago Federal Reserve Governor Evans, a renowned Fed dribbler in prepared notes on inflation and employment said less accommodative monetary policy will dampen very high labor demand. He believes inflation will fall substantially over the next couple of years. He said the labor market is a downright tight Inflation clearly much too high. Nothing new there. He spoke just ahead of the latest 20-year treasury auction. “I expect it will be necessary to bring rates up a good deal … Continue reading “Chicago Federal Reserve Governor Evans Says Labor Market is Downright Tight”

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”

US Producer Price Inflation Rose 0.5% m/m and 11.0% y/y in April

US Producer price inflation continues elevated at a rapid pace, a long way from the Central Bank transitory mantra. Annual PPI came in at 11.0% (vs. 11.5% in March) core producer prices were up 8.8% (vs. +9.2% in March). March was the largest increase since data were first calculated in December 2009. Month-over-month the rise was 0.5% in April (consensus +0.5%), and core producer prices rose 0.4% m/m (consensus +0.6%).  April 2022 PPI The Producer Price Index for final demand … Continue reading “US Producer Price Inflation Rose 0.5% m/m and 11.0% y/y in April”

US Producer Price Inflation Soars in January Double Expectations PPI +1.0% m/m +9.7% y/y

US Producer price inflation continues elevated at a rapid pace, a long way from the Central Bank transitory mantra. Annual PPI rose to 9.7% in January matching December and higher than the expected 9.1% y/y. This matched the largest increase since data were first calculated in December 2009. The1.0% month-over-month rise was double the consensus 0.5% due to the sharp rise in goods prices. January 2022 PPI The Producer Price Index for final demand increased 1.0 percent in January, seasonally … Continue reading “US Producer Price Inflation Soars in January Double Expectations PPI +1.0% m/m +9.7% y/y”

Lower US Producer Price Inflation Dependent on Oil Prices

US Producer price inflation continues elevated, a long way from the Central Bank transitory mantra. Annual PPI rose to 9.7% in December. This was the largest increase since data were first calculated in December 2009. The 0.2% month-over-month rise was less than a consensus 0.4% due to the sharp drop in oil prices which has since reversed in January as has natural gas. December 2021 PPI The Producer Price Index in December for final demand was up 9.6% on an … Continue reading “Lower US Producer Price Inflation Dependent on Oil Prices”