Producer price index comes in hot

Market will not like this news today.

Fellow comrades, these numbers are clearly fake. Biden and Obama are responsible for these terrible, fake numbers. Now, we must fire someone just to prove how fake they are.

This suggests the rise is more structural than just tariffs. The largest jumps were in sectors seemingly not impacted by trade. Not sure if that is good news or bad news lol

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from BLS - contributors

Final Demand
Final demand services: The index for final demand services moved up 1.1 percent in July, the largest
advance since rising 1.3 percent in March 2022. Over half of the broad-based July increase is attributable to
margins for final demand trade services, which jumped 2.0 percent. (Trade indexes measure changes in
margins received by wholesalers and retailers.) Prices for final demand services less trade, transportation,
and warehousing and for final demand transportation and warehousing services advanced 0.7 percent and 1.0
percent, respectively.
Product detail: Thirty percent of the July rise in prices for final demand services can be traced to margins for
machinery and equipment wholesaling, which jumped 3.8 percent. The indexes for portfolio management;
securities brokerage, dealing, investment advice, and related services; traveler accommodation services;
automobiles retailing (partial); and truck transportation of freight also advanced. In contrast, prices for
hospital outpatient care fell 0.5 percent. The indexes for furniture retailing and for pipeline transportation of
energy products also declined. (See table 2.)
Final demand goods: Prices for final demand goods moved up 0.7 percent in July, the largest advance since
rising 0.7 percent in January. Forty percent of the broad-based increase in July can be attributed to the index
for final demand foods, which jumped 1.4 percent. Prices for final demand goods less foods and energy and
for final demand energy moved up 0.4 percent and 0.9 percent, respectively.
Product detail: A quarter of the July advance in the index for final demand goods can be traced to prices for
fresh and dry vegetables, which jumped 38.9 percent. The indexes for meats, diesel fuel, jet fuel, nonferrous
scrap, and eggs for fresh use also rose. Conversely, prices for gasoline decreased 1.8 percent. The indexes for
canned, cooked, smoked, or prepared poultry and for plastic resins and materials also declined.

Not to mention PPI is a leading indicator.

Even with no cuts, inflation is going to rip. A September cut would be a terrible decision.

Why stop at Obama? Clearly, this was caused by JFK. Probably got him killed.

stockas not happy today

If we were living in non-threatening times by a POTUS the Fed's next rate move would likely be UP not down.

CPI comes in well over the Fed's target rate of 2.0% and the PPI jumps up massively on a pace to hit double digit inflation annually if it continues to increase at this pace.

Fed funds probably need to be bumped to 5.0% to 5.5% in order to squeeze inflation out.

At least my emergency fund hysa APY should stay good for a while longer.

I personally think inflation is going to bounce right back if we make any substantial rate cuts.

Demand is still there, stores/restaurants busy, beef/steaks still be purchased at record highs.