Following the widespread attention that yesterday's unexpectedly high US CPI inflation report received across both mainstream and financial news outlets, the PPI figures released today are turning out to be even more remarkable. These new numbers stand out significantly, not just in their absolute values but also when compared to market predictions.
For instance, the headline PPI for September surged by 1.3 percent. We have not seen a spike this large since March 2022, a period when the cost of food and energy skyrocketed in the wake of the Russian invasion of Ukraine. Because of this recent jump, the annual PPI inflation rate has reached 6.3 percent, easily eclipsing the consensus forecast of 5.4 percent.
Similarly, September saw a 0.7 percent climb in the core PPI. As a result, the annual core inflation rate is currently resting at 5.0 percent, which is noticeably higher than the 4.4 percent consensus expectation.
Despite these undeniably elevated figures, an interesting plot twist has emerged. Rather than climbing in response to the hot data, the US 10-year yield has actually decreased to 5.06 percent. We will be providing further updates on this developing story.
#economy #markets #inflation #cpi #ppi
For instance, the headline PPI for September surged by 1.3 percent. We have not seen a spike this large since March 2022, a period when the cost of food and energy skyrocketed in the wake of the Russian invasion of Ukraine. Because of this recent jump, the annual PPI inflation rate has reached 6.3 percent, easily eclipsing the consensus forecast of 5.4 percent.
Similarly, September saw a 0.7 percent climb in the core PPI. As a result, the annual core inflation rate is currently resting at 5.0 percent, which is noticeably higher than the 4.4 percent consensus expectation.
Despite these undeniably elevated figures, an interesting plot twist has emerged. Rather than climbing in response to the hot data, the US 10-year yield has actually decreased to 5.06 percent. We will be providing further updates on this developing story.
#economy #markets #inflation #cpi #ppi