Anthony Chan, the chief economist of former JP Morgan Chase, has discussed more on the impact of tariff policies of President Donald Trump, the purchase power of rich consumers and ‘Varney & Company’.
Bulk inflation In July, there was a lot of increase than expected, increasing concerns about the revival of inflation pressure in the economy.
Bureau of Labor Statistics released on Thursday producer price Index For the month of July, which saw an increase of 0.9% from the former month and 3.3% a year ago.
Those PPI figures were much hotter than the forecast of prices rising 0.2% on a monthly basis and 2.5% from last year which was estimated by economists voted by LSEG.
The core PPI, which excludes volatile components such as food and energy, increased 0.9% from the previous month and was above 3.7% from a year ago – above 0.2% and LSEG estimates of 0.2% and 2.9% respectively. The 0.9% monthly growth in the core PPI was the largest growth after March 2022.
Fed’s current monetary policy is stance ‘Absolutely where we want to be,’ says the official
Unexpected increase in wholesale prices promoted concerns about inflation. (David Paul Morris / Bloomberg Getty Image / Getty Image)
The headline PPI was initially reported as 2.3% in June and was revised up to 2.4% in June. Jump into Core ppi It comes to 3.7% after being just 2.6% in June. Both the headline and the core PPI did not show any monthly increase in June before an increase in July.
Services prices rose by 1.1% in July, the biggest growth since the growth of 1.3% in March 2022. For July, more than half of the broad-based growth in prices was responsible for margin for trade services, which jumped 2% and measured changes in margins received by wholesalers and retailers.
Margin for machinery and equipment jumped 3.8% in July, accounting for about 30% of monthly growth – while financial services, travel housing services, Auto retailing And truck transport of goods also increased.
The prices of the goods posted their biggest profit since January, with an increase of 0.7%, with a strong increase in prices Vegetables, meat and eggs,
Treasury’s Bezant says he does not support suspending monthly job reports
The stunning growth of PPI inspired marketworks to assure the possibility of cutting the September rate by Fed. (David Paul Morris / Bloomberg Getty Image / Getty Image)
“PPI suggests that inflation is not a non-store, some thought that it would be after Tuesday’s CPI print,” Chris Larkin said, the managing director of trading and investing in E*trades from Morgan Stanley. “It does not slam the door at the September rate cut, but depending on the market’s initial response, the opening may be slightly smaller than a few days ago.”
James Shenk, CEO of Penfed Credit Union, said, “This morning’s PPI report and explosives missed for the higher side
“As a result, the markets are going to do deep excavations to see the world because it is – not how they want. It is less than the possibility of high rates and the possibility of a fed rate cut in September,” Shenk said. “Once again, critics BLS can also challenge the accuracy of quarterly numbers and forecasts.”
Inflation cools slightly from the earlier month in July
Unlike the Consumer Price Index (CPI), the manufacturer price index (PPI) excludes imported goods and focuses on domestic prices. (Photo by Spencer Plot / Getty Image / Getty Image)
Chris Zekereli, Chief Investment Officer for Northlight Asset Management, said that federal Reserve Will still get higher inflation figures-including PPI and CPI as well as PCE inflation index as well as a further job reports ahead of its next interest rate decision in mid-September, but said it can reduce optimism around the approach to deduction in rate.
“This morning in the productive price index (PPI) a large spike shows that the inflation is coming through the economy, even though it has not yet been felt by consumers. Given how the CPI number was benign on Tuesday, it is the most unwanted surprise for the reverse and the next month is likely to reveal some optimism of the guarantee,” said Zacarlli.
The market on 17 September reacted to the hot-to-up-appointed PPI report by returning its approach to the size and possibility of the Fed Cutting Rates.
Get Fox Business when you click here
According to the CME Fedwatch Tool, the benchmark Federal Funds rate increased from 4.25% to 4.25% to 4.5% from the current range to 7.5% by Thursday morning.
After the report, the possibility of a 50-base-point cut fell from 5.7% to 0% yesterday, while the 25-base-point cut decrease declined from 94.3% to 92.5% as compared to the previous day.
Reuters contributed to this report.
