Thread: Producer Price Index (PPI)

Define "fine."

I know there are people who see everything through the lens of politics, which is what I assume you are getting at, but I think the other side of getting inflation under control is the strong potential for recession next year. Don't forget about the inverted yield curve which hasn't gotten any better, and even if it does improve, unless Powell has some magic up his sleeve, history suggests a recession is still a high probability in 2023.




So "fine" may mean inflation is calming down, but there's more to it than that. Not that we can't have decent rallies in this environment but, at the risk of sounding like a perma-bear, I don't think things are fine just yet.

Wholesale prices rose 0.3% in November, more than expected, despite hopes that inflation is cooling

The producer price index, a measure of what companies get for their products in the pipeline, increased 0.3% for the month and 7.4% from a year ago.

A 38% surge in wholesale vegetable prices helped push the food index up by 3.3%, offsetting an identical 3.3% decline in energy costs.

Markets now will turn their attention to the more closely watched consumer price index, which is due out Tuesday morning.

https://www.cnbc.com/2022/12/09/whol...s-cooling.html

Wholesale prices fell 0.5% in December, much more than expected

The producer price index declined 0.5% for the month, compared to the Dow Jones estimate for a 0.1% decrease.

A sharp drop in energy prices helped bring the headline inflation reading down for the month. The PPI’s final demand energy index plunged 7.9%.

Retail sales fell 1.1% in December, slightly more than the 1% forecast.

https://www.cnbc.com/2023/01/18/whol...-expected.html

Wholesale prices rose 0.7% in January, more than expected, fueling inflation increase

The producer price index rose 0.7% in January, higher than the 0.4% estimate.

Excluding food and energy, core PPI increased 0.5%, compared with expectations for a 0.3% increase.

In other economic data, jobless claims edged lower to 194,000, below the estimate for 200,000. Also, the Philadelphia Fed’s manufacturing index plunged to -24.3, well below the -7.8 estimate.

https://www.cnbc.com/2023/02/16/prod...ary-2023-.html

Supplier Prices Fell in March, Adding to Signs of Moderating Inflation

Producer-price index declined 0.5% from prior month, largest drop since April 2020

Wholesale prices rose just 0.2% in April, less than estimate as inflation pressures ease

The producer price index, a measure of prices for final demand goods and services, increased 0.2%, against the Dow Jones estimate for 0.3%. Excluding food and energy, core PPI also rose 0.2%, in line with expectations.

https://www.cnbc.com/2023/05/11/whol...ures-ease.html

Producer prices fell 0.3% in May, more than expected

Wholesale prices fell even more than expected in May, providing another sign that inflation pressures are beginning to ease in the U.S. economy, the Labor Department reported Wednesday.

Excluding food and energy, PPI rose 0.2%, in line with the estimate.

https://www.cnbc.com/2023/06/13/stoc...e-updates.html

More good news on the inflation front.


June wholesale prices rise less than expected in another encouraging inflation report

The PPI for final demand rose 0.1%. Economists surveyed by Dow Jones were expecting an increase of 0.2%. The PPI climbed 0.1% when excluding food, energy and trade services, which was in line with expectations.

https://www.cnbc.com/2023/07/13/ppi-...-expected.html

Wholesale prices rose 0.3% in July, higher than expected

The producer price index rose 0.3% for the month, slightly higher than the 0.2% estimate.

On a year-over-year basis, headline PPI was up just 0.8%. Prices excluding food, energy and trader moved up by 2.7%.

https://www.cnbc.com/2023/08/11/whol...-expected.html

August wholesale inflation rises 0.7%, hotter than expected

Inflation at the wholesale level rose more than expected in August, countering recent data showing that price increases have tempered lately.

The producer price index, a measure of what producers get for their goods and services, increased a seasonally adjusted 0.7% in August and 1.6% on a year-over-year basis. That monthly gain was above the Dow Jones estimate for a 0.4% increase.

However, excluding food and energy, core PPI increased 0.2%, in line with the estimate.

https://www.cnbc.com/2023/09/14/ppi-...ust-2023-.html

Wholesale inflation rose 0.5% in September, more than expected

The producer price index increased 0.5% for September, against the Dow Jones estimate for a 0.3% rise.

Excluding food and energy, core PPI was up 0.3%, versus the forecast for 0.2%.

Inflation pressures came primarily from final demand goods, which surged 0.9% on the month, while services increased 0.3%.

https://www.cnbc.com/2023/10/11/ppi-september2023-.html