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PPI inflation was 0% in June, below expectations of 0.2% increase

Posted on 7/16/25 at 8:32 am
Posted by HailHailtoMichigan!
Mission Viejo, CA
Member since Mar 2012
73014 posts
Posted on 7/16/25 at 8:32 am
Posted by The Boat
Member since Oct 2008
175418 posts
Posted on 7/16/25 at 8:33 am to
Interest rates are doing a good job. Job growth remains good too. No change needed.
Posted by Bard
Definitely NOT an admin
Member since Oct 2008
57719 posts
Posted on 7/16/25 at 8:40 am to
PPI and CPI don't move in lock-step but PPI can influence CPI 30-60 days out. If CPI holds or drops, even slightly, for July and/or August, it's going to be fun watching the pundits trying to explain it after all their teeth-gnashing over tariffs.
Posted by SDVTiger
Cabo San Lucas
Member since Nov 2011
92745 posts
Posted on 7/16/25 at 8:45 am to
Posted by Hateradedrink
Member since May 2023
3912 posts
Posted on 7/16/25 at 8:53 am to
In your opinion, is there any argument to be made that the rate cuts last year aren’t causing more inflation and, thus, cuts should resume?
Posted by NC_Tigah
Make Orwell Fiction Again
Member since Sep 2003
135279 posts
Posted on 7/16/25 at 10:00 am to
quote:

Job growth remains good too. No change needed.



Posted by Hateradedrink
Member since May 2023
3912 posts
Posted on 7/16/25 at 11:51 am to
Isn’t around 4% considered ideal for unemployment? Thought I remembered that from somewhere because otherwise businesses start getting into bidding wars for employees
Posted by LSURussian
Member since Feb 2005
133445 posts
Posted on 7/16/25 at 12:08 pm to
Traditionally 4-5% unemployment has been considered “full employment.”

The unemployment rate has occasionally gone below 4% for short periods (such as during WW2 and following the COVID pandemic) and it has almost always been followed by a burst of higher than desired inflation.
Posted by lsu13lsu
Member since Jan 2008
11764 posts
Posted on 7/16/25 at 12:39 pm to
quote:

In your opinion, is there any argument to be made that the rate cuts last year aren’t causing more inflation and, thus, cuts should resume?


Rate cuts did nothing to market rates. That is why there hasn't been inflation. They can cut rates all they want. But as long as this country has too much debt/deficit, jobs, stock market at all time highs, etc. Market rates won't budge.
Posted by C
Houston
Member since Dec 2007
28149 posts
Posted on 7/16/25 at 2:55 pm to
To me, the labor participation rate dropping is the bigger issue.
Posted by The Boat
Member since Oct 2008
175418 posts
Posted on 7/16/25 at 4:16 pm to
quote:

To me, the labor participation rate dropping is the bigger issue.

The youngest Baby Boomers are about 61 now
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