#USJulyCPI&PPIDueThisWeek
PPI FLASH: HEADLINE FLAT, CORE COOLS - DISINFLATION IS REAL
July PPI came in at 0.0% (forecast 0.2%, prior -0.1% rev) - a miss that confirms pipeline inflation is cooling faster than expected.
Core PPI (ex-food & energy) rose 0.2% (forecast 0.3%, prior 0.4% rev) - below expectations and down from June's revised 0.4%.
Year-over-year:
· Headline PPI: 4.7% (forecast 4.9%, prior 5.5%)
· Core PPI: 4.2% (forecast 4.2%, prior 4.7%)
After yesterday's softer CPI, this is the second consecutive disinflation print. Energy prices are falling, services inflation is moderating, and the Fed's hawkish case is crumbling.
September rate-hike odds just took another hit. Markets had priced a ~36% chance before the print; expect that to drop further.
PPI FLASH: HEADLINE FLAT, CORE COOLS - DISINFLATION IS REAL
July PPI came in at 0.0% (forecast 0.2%, prior -0.1% rev) - a miss that confirms pipeline inflation is cooling faster than expected.
Core PPI (ex-food & energy) rose 0.2% (forecast 0.3%, prior 0.4% rev) - below expectations and down from June's revised 0.4%.
Year-over-year:
· Headline PPI: 4.7% (forecast 4.9%, prior 5.5%)
· Core PPI: 4.2% (forecast 4.2%, prior 4.7%)
After yesterday's softer CPI, this is the second consecutive disinflation print. Energy prices are falling, services inflation is moderating, and the Fed's hawkish case is crumbling.
September rate-hike odds just took another hit. Markets had priced a ~36% chance before the print; expect that to drop further.