Sign up today for an exclusive discount along with our 30-day GUARANTEE — Love us or leave, with your money back! Click here to become a part of our growing community and learn how to stop gambling with your investments. We will teach you to BE THE HOUSE — Not the Gambler!

Click here to see some testimonials from our members!

US Producer Prices Soar At Record Pace In June

Courtesy of ZeroHedge View original post here.

Following yesterday's hotter than expected consumer price inflation, expectations were for another rise in producer prices this morning and just like CPI, the headline PPI soared past expectations, up 1.0% MoM (rising 7.3% YoY vs 6.7% exp).

That is the highest print on record (back to only 2010) but for context that is the highest since a CPI print in 1982…

Source: Bloomberg

Core PPI continued to accelerate…

Source: Bloomberg

Goods prices rose 1.2% MoM and Services were up 0.8% MoM…

PPI Goods:

Within the index for final demand goods in June, prices for industrial chemicals rose 4.5 percent.

Prices for gasoline, meats, electric power, processed poultry, and motor vehicles also moved higher.

In contrast, the index for oilseeds fell 11.7 percent. Prices for diesel fuel and for distilled and bottled liquor (excluding brandy) also declined.    

PPI Services:

Twenty percent of the June increase in the index for final demand services can be traced to margins for automobiles and automobile parts retailing, which rose 10.5 percent.

The indexes for machinery and vehicle wholesaling; hardware, building materials, and supplies retailing;  guestroom rental; professional and commercial equipment wholesaling; and transportation of passengers (partial) also moved higher. 

Conversely, margins for apparel wholesaling fell 6.0 percent. The indexes for machinery and equipment parts and supplies wholesaling and for gaming receipts (partial) also declined.

This is a major problem as corporates face collapsing margins from soaring input prices.

Source: Bloomberg

So either they pass those prices on to consumers or profits collapse?

What will Jay Powell say about this later?


Do you know someone who would benefit from this information? We can send your friend a strictly confidential, one-time email telling them about this information. Your privacy and your friend's privacy is your business... no spam! Click here and tell a friend!





You must be logged in to make a comment.
You can sign up for a membership or get a FREE Daily News membership or log in

Sign up today for an exclusive discount along with our 30-day GUARANTEE — Love us or leave, with your money back! Click here to become a part of our growing community and learn how to stop gambling with your investments. We will teach you to BE THE HOUSE — Not the Gambler!

Click here to see some testimonials from our members!