US Producer Price Inflation Hovers Near Record Highs, Energy Costs Dominate
Following CPI’s unexpected crushing of the ‘peak inflation’ narrative, analysts expected PPI to slow modestly from 11.0% YoY to 10.9% YoY in May. US Producer Prices actually printed a slight miss at +10.8% YoY and was up 0.8% MoM – the 25th straight month of increasing prices…
Nearly two thirds of the May increase was due to an advance in goods prices, especially energy.
Core PPI also missed expectations (to the downside), rising 0.5% MoM (vs +0.6% exp) and +8.3% YoY (vs +8.6% exp). Notably April’s data was revised significantly lower across the board.
The pipeline for producer price inflation remains troublesome as intermediate demand goods prices stubbornly remained notably above the headline…
Finally, margins remain under pressure as the CPI-PPI proxy remains significantly underwater…
So, will a 75bps hike tomorrow fix all this?
Tue, 06/14/2022 – 08:38