Just a friendly reminder that PPI comes out tomorrow at 8:30am ET. I’m expecting PPI to come in hot again. For August, I see a 0.3% month-over-month jump, keeping the annual rate stuck around 3.3%.
PPI tracks what producers get paid for their goods and services basically the “factory door” prices before anything ever reaches you and me. And when those costs rise, it often shows up later in CPI, which measures what consumers actually pay at checkout.We already saw the pressure building last month. In July, producer prices spiked 0.9%, the sharpest monthly jump in three years pushing PPI to 3.3% YoY. That was more than four times what economists expected.The bigger story here is sticky inflation. Tariffs keep raising input costs, and while companies can eat those costs for a while, they’re slowly pushing them onto consumers. Because the tariff hikes rolled out in stages, the impact isn’t a one-off shock, it’s being stretched out over time, keeping prices under pressure.Layer that on top of core inflation already running a few tenths above the Fed’s 2% target, and it’s why I don’t see PPI cooling anytime soon.I’ll be covering this extensively tomorrow, make sure to turn on notifications so you don’t miss the updates.Source: StockMarket.News
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