Customers look at clothing that are exhibited on April 18, 2025 in a Costco branch in Niantic, Connecticut.
Robert Nickelsberg | Getty pictures
The producer price index, a costometer on wholesale in the US economy, recorded an unexpected decrease of 0.1%in August. Here is what to know:
- For the third time this year, the PPI showed a direct deflation in a generally as a measure of the pipeline price pressure. The Wall Street economists had searched for 0.3% after an increase. The core (which exhaust food and energy and energy also fell by 0.1%, although the core of the commercial services has actually increased by 0.3%
- The tame reading will only feed the market expectations of a Federal Reserve Rate in the next week, and President Donald Trump was quickly in the case. “Only outside: no inflation !!! ‘too late’ the rate, big, currently. Powell is a total disaster that has no idea !!!” In his last shot at the Fed Chairman Jerome Powell, he posted socially socially about truth societies.
- Despite the tame inflation and almost certainty of a speed shortening, the market reaction was subdued. The shares rose easily and the yields of the finance of finance were only modest. The PPI is generally not considered a top -class or well -understood metric, and retailers are likely to wait for the consumer price indexprint on Thursday.
- Fed officers not only look at headlines, but also at the underlying drivers. The PPI report provided good news about the basics in inflation. The service sector, which drives around 80% of GDP, saw direct deflation and fell by 0.2%. Even the prices for the goods that are much more affected by tariffs rose only by 0.1%.
- The CPI reading, which is due on Thursday at 8:30 a.m. ET, will attract more attention. As with the PPI, the consensus look for an increase of 0.3%. About four fifths of the CPI and PPI numbers move into the price index for personal consumption expenses in the preferred inflation indicator of the FED. The CPI is the last big data point before the Fed’s interest rate decision in a week.
What you say:
“The CPI of tomorrow will have more weight, but today’s PPI printing has launched the red carpet for a fed rate reduction in the next week. According to the report of the past week, the market already expected the FED to start a loosening cycle. Investmenting, tading and investment, lizard trreat, echern, reality, real, echern, echern, echern, real time, reality, marriage-treat-treat-treat-treat-treat-treat.
“The worst-case scenario in inflation does not play.-David Russell, global market manager of the market strategy for tradestation.
“The overall inflation pressure in PPI seems to be steamed overall. … We see nothing in this report (or its effects on Core PCE), the Fed civil servant would prevent 25 BP in September and to shorten 25 BP at every upcoming political session.” – Citigroup economist Andrew Hollenhorst.
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