Commentary For reasons I don’t get, the whole of financial markets is obsessed with the Consumer Price Index (CPI) but the Producer Price Index (PPI) is largely ignored. It hardly makes the headlines. That makes no sense because everything we consume (except maybe bugs) has to be produced. The consumer experience of inflation is downstream…
Is This Finally Some Tolerable Inflation News?
Wholesale Inflation Slows Sharply to Slowest Pace in 2 Years
Wholesale inflation slowed sharply in March after a year of Federal Reserve rate hikes, with producer prices rising at their slowest pace in two years. The Producer Price Index (PPI)—which reflects price changes by manufacturers, farmers, and wholesalers—fell by 0.5 percent month-over-month in March, according to data from the Bureau of Labor Statistics (BLS). Consensus forecasts expected…
Wholesale Inflation Falls, Retail Sales Slump, Investors Bet Fed Will Stop Hiking Rates
Wholesale inflation slowed sharply in February as retail sales turned negative, a sign that inflationary pressures may be easing and bolstering investor bets that the Federal Reserve will slow it blistering pace of interest-rate hikes as the economy cools. The Producer Price Index (PPI), which reflects prices charges by manufacturers, farmers, and wholesalers, fell by…
Wholesale Inflation Rises 8 Percent, but Stocks Jump as Investors Thought It Would Be Worse
Wholesale inflation rose by 8 percent in annual terms and 0.2 percent in monthly terms in October, suggesting inflationary pressures for consumers are far from dissipated, but stocks rallied on the opening bell as investors thought the price data would be worse. Investors expected that inflation from the perspective of business input costs, as measured…
China Inflation Hits 29-Month High
BEIJING -China’s consumer inflation rose to a 29-month high in September, driven mainly by pork prices. China’s central bank has been trying to bolster growth while avoiding aggressive loosening that could fan price pressures and risk outflows, as the Federal Reserve and other central banks raise interest rates to fight soaring inflation. Consumer prices rose…
Producer Prices Are Red Hot
Commentary The spin machine on inflation news has been working on overdrive. Yesterday’s CPI release revealed terrible news and that was obvious within seconds of the release. It was a shock so perhaps it is understandable that the pressure of deadlines caused major media to downplay how grim it was. First we were told it…
White House Doubles Down on ‘Zero’ Inflation Narrative
While on CNN’s “OutFront, White House Communications Director Kate Bedingfield, on Aug. 11, doubled down on President Biden’s statement this week that there was “zero” inflation. She stood by Biden’s zero inflation narrative by claiming that inflation was on the ebb, after the latest annual data from July showed inflation grow at 0.0. “I would…
The Great Squeeze in Profit Margins
Commentary It’s beyond me why the Consumer Price Index (CPI) garners so much attention from the press, but the statistical release the following day barely makes a dent in the news cycle. That is the Producer Price Index (PPI). In many ways, the PPI is more important because it forecasts the plight of the consuming…
China’s Factory Gate, Consumer Inflation Eases Further in December: Official Data
Both China’s factory gate and consumer inflation rose at a slower pace in December, following the fall of some raw material prices, official data showed on Jan. 12. Consumer price inflation also slowed last month as food prices fell, the National Bureau of Statistics (NBS) said in a statement. China’s producer price index (PPI), which…
China’s Consumer and Producer Price Index at Record Pace
As the end of the year approaches, people across China see higher prices at grocery stores, gas pumps, and even at home as Beijing tries to tame inflation. According to a December report by China’s Bureau of National Statistics, the country’s producer price indexes (PPI) in October and November were up by 13.5 percent and…
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