re: PPI blows through expectations - over 3x higher than expected

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Here it is folks. The Money Board experts and rogetthedumbarse

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Poor baby is upset he's not getting his rate cuts.

Sad!

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Also that chart shows PPI at 3.3%.


It got has high as 11.7% under Biden.

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shhhh

let them have their circle jerk. They don't have much to celebrate today, so they needed something they thought was negative for the country. Let that sink in. A number that may or may not be correct, but is still 4 times lower that what Biden once had, and they are celebrating that it could be bad for this country. Seriously, let that sink in. Again, SFP is just a loser with half a brain playing a role on this site. Roger.....he is sincere. Bless his heart.

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Services inflation seemed to be a very high outlier. Can someone explain how or if this can be attributed to tariffs?

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If you can be more specific about which services, maybe.

This report is showing the same thing that the report the other day showed.

The rate of inflation is back to Biden levels.

The report the other day showed airline fares, auto insurance, medical and dental services, and rent being the biggest drivers. I can explain every one of those in terms of tariffs.

Airline fares—Cargo shipping is down due to tariffs (not as much being imported via plane), so airlines have to make up that revenue somewhere else. Also, airlines have to maintain and repair airplanes and other equipment, and those parts come from overseas. They are also still manufacturing planes, and the materials and parts for those come from overseas.

Auto insurance—Same as airplanes. When the parts to fix your car cost more, they have to charge more to insure it.

Medical and dental—Same story. We get the majority of our medical supplies overseas.

Rent—Same. Landlords have to maintain properties and when lumber and aluminum and steel cost more, they have to raise rents. And even if you are just a small landlord with 1-2 properties and you haven't had to do any renovations on your properties, you're going to raise your rent if properties all around you are raising theirs. Because you can.

And notice that this affects commercial as well as residential rents. Once the rents for commercial starts going up significantly (which will happen gradually, as leases come up for renewal) everything you can think of will potentially cost more.

Not for nothing, but I told y'all this would happen a year ago. I didn't specifically predict the airline fares, but I specifically used every other one of those industries as an example of exactly what would happen. Nothing is happening with this that wasn't obvious from the outset.

Wait a year and see what is going to happen with housing prices.

You'll love it.

Honestly, I think Trump will pull the plug on this silliness before then.

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This will age well

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This is all you have left, chief.

Kind of the point of higher tariffs you’d think. There was a time not long ago when you couldn’t really make that statement

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Services inflation provided much of the push higher, moving 1.1% higher in July for the largest gain also since March 2022. Trade services margins rose 2%, coming amid ongoing developments in President Donald Trump’s tariff implementations.

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There are tariffs on services?

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with CPI better than expected, and PPI worse than expected, this means the companies are accepting a large portion of the tariff burden.

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That’s somewhat logical, but you have to be careful when you consider PPI is a leading indicator and CPI is historical.

Temporal precedence matters in this case.

You can’t draw that conclusion until the NEXT CPI report.

ETA: I jumped the gun and didn’t catch the last half of your post where you said the same. Mea culpa.

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The rate of inflation is back to Biden levels.

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lmao

THIS is the type of posters we have on here. You can't make this up.

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Not for nothing, but I told y'all this would happen a year ago. I didn't specifically predict the airline fares, but I specifically used every other one of those industries as an example of exactly what would happen. Nothing is happening with this that wasn't obvious from the outset.

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Honestly, I think Trump will pull the plug on this silliness before then.

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There's a reason he's making posts insisting that corporations shouldn't pass on tariff costs to consumers. I don't care how he frames it, he knows that we the people are paying these tariffs, not companies and not foreign countries. When you try to get that through the thick skulls of some posters here they call you a cuck or a liberal but reports like this pour ice water on their talking points.

If this whole act gets other countries to lower their trade barriers, great. But in no way should these dumb arse tariffs be a lasting thing.