U.S. producer inflation is unchanged in July, below expectations
The Bureau of Labor Statistics reports U.S. PPI was unchanged in July, with annual producer inflation easing to 4.7% from 5.5% and core PPI rising 0.2% month over month.
1% decline, the Bureau of Labor Statistics reported Thursday. 9% consensus. 2%, in line with expectations. 5%, an in-line report that showed the energy-driven inflation burst continuing to fade.
Where Did Producer Prices Fall And Rise In July? Energy was the biggest source of relief. 8% in June. 7%, accounting for more than half of the decline in final-demand goods prices.
9%. Diesel fuel, jet fuel and residual fuel prices declined as well. Not everything moved lower. 3%, while electric power and grains also increased.
5% increase. 5% in July. 2%. The result was a flat headline PPI reading for the month.
There was also an important divergence beneath the flat headline. 1% in June. That suggests the disinflation story is not completely uniform. Market Reactions The market initially treated the report as another piece of good news for the Fed.
163%, while the dollar slipped and gold moved higher. S. equity futures also edged up, with the S&P 500, Nasdaq 100, Dow Jones and Russell 2000 all in positive territory. 3% below record highs.
The key number, however, remains the September Fed meeting. 6% probability of no change. 2% one month ago for a hike, according to the market data in the chart. In other words, the market is already moving toward a Fed hold.
Today's PPI report gives that move another reason to continue. Image created using artificial intelligence via Midjourney.