Following the ‘mixed’ message from CPI earlier in the week (which the market perceived as dovishly cooler than expected), Producer Price Inflation was expected to accelerate in July’s data released today.
…and accelerate it did – dramatically with headline PPI rising 0.9% MoM (massively more than the +0.2% expected and the biggest jump since June 2022) sending PPI up 3.3% YoY (highest since Feb 2025)…
Source: Bloomberg
Core PPI also jumped 0.9% MoM (dramatically hotter than expected) with the YoY shift spiking to +3.7%…
Source: Bloomberg
The surge in producer prices was driven almost entirely by Services (how is that tariff related?)
PPI Energy prices are accelerating, tracking the oil price jump…
Source: Bloomberg
Over half of the increase is attributable to margins for final demand trade services, which jumped 2.0% with margin pressure roaring back…
Source: Bloomberg
Will Trump fire the new BLS chief?
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