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January PPI up 0.5

Posted on 2/19/20 at 7:36 am
Posted by HubbaBubba
North of DFW, TX
Member since Oct 2010
51624 posts
Posted on 2/19/20 at 7:36 am
Expected was 0.1. Hello inflation.

With the way home and auto prices have been going up not too surprising, but is this the effect, finally, of raised prices and shortages from the tariffs?
Posted by bamarep
Member since Nov 2013
52548 posts
Posted on 2/19/20 at 7:37 am to
IB Chinaman, is that you?
Posted by HubbaBubba
North of DFW, TX
Member since Oct 2010
51624 posts
Posted on 2/19/20 at 7:38 am to
I deserved that.
Posted by gthog61
Irving, TX
Member since Nov 2009
71001 posts
Posted on 2/19/20 at 7:38 am to
Are we going to do the one datapoint makes a trend shite?

We are going to do the one datapoint makes a trand shite
Posted by bamarep
Member since Nov 2013
52548 posts
Posted on 2/19/20 at 7:38 am to
Posted by udtiger
Over your left shoulder
Member since Nov 2006
114934 posts
Posted on 2/19/20 at 7:39 am to
I'd like to see the report. I'd imagine there are some outliers.
Posted by HubbaBubba
North of DFW, TX
Member since Oct 2010
51624 posts
Posted on 2/19/20 at 7:44 am to
quote:

I'd like to see the report. I'd imagine there are some outliers.
Knock yourself out.
Posted by udtiger
Over your left shoulder
Member since Nov 2006
114934 posts
Posted on 2/19/20 at 7:52 am to
quote:

In January, 90 percent of the increase in the final demand index is attributable to prices for final
demand services, which climbed 0.7 percent. The index for final demand goods inched up 0.1
percent.


That's important. Services are the driver for this number, not goods. Likely driven by wage growth.

This is likely a bounce back or recovery number considering the long term trend PPI for services dropped in November and December: LINK

This increase doesn't even get it back to the number in October 2019

quote:

Prices for final demand less foods, energy, and trade services advanced 0.4 percent in January,
the largest increase since a 0.4-percent rise in April 2019. For the 12 months ended in January,
the index for final demand less foods, energy, and trade services moved up 1.5 percent
.


The "moving average" of annual PPI (including this month's number) is 1.5 (below 2.0 Fed target)

Certainly something to watch, but not a reason to freak out.
This post was edited on 2/19/20 at 7:53 am
Posted by HubbaBubba
North of DFW, TX
Member since Oct 2010
51624 posts
Posted on 2/19/20 at 7:55 am to
Actually, if you break it down like this, it's really good to see earnings and increases in wages as the recognized factor. Really points to the strong economy and pressure in hiring to offer higher wages to attract new hired.
Posted by udtiger
Over your left shoulder
Member since Nov 2006
114934 posts
Posted on 2/19/20 at 7:56 am to
quote:

Actually, if you break it down like this, it's really good to see earnings and increases in wages as the recognized factor. Really points to the strong economy and pressure in hiring to offer higher wages to attract new hired.




Still, want to keep it under 2%. Fed is itching to come in and frick shite up.
This post was edited on 2/19/20 at 7:57 am
Posted by 90proofprofessional
Member since Mar 2004
24445 posts
Posted on 2/19/20 at 7:59 am to
Looks like this was driven by services, not Goods, so it's unlikely the tariffs had much to do with this particular month's bump
Posted by BayBengal9
Bay St. Louis, MS
Member since Nov 2019
4171 posts
Posted on 2/19/20 at 8:00 am to
quote:

Still, want to keep it under 2%. Fed is itching to come in and frick shite up.


No doubt about that... economy is humming along nicely and inflation is staying low, so Fed just needs to keep their powder dry and not screw around with anything.
Posted by BestBanker
Member since Nov 2011
19408 posts
Posted on 2/19/20 at 8:15 pm to
Bond rates were higher today
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