CPI numbers
- Thread starter Rickshaw Man
- Start date
Could start to invert the yield curve, and everyone will say "this time its different"
The latest inflation data PPI&CPI will force the hand of the Fed and it will raise rates later this month. Their main job is to fight inflation, if they give in to political pressure for the sleazy politicians it could mean even more trouble as international countries with all the money might start to liquidate their US holdings, that would be a nightmare.
Sorry I meant the upcoming data next week PPI Sept 13, CPI Sept 16.
PPI for August
0.6% vs expectations of 0.7%
Core was perfect 0 vs exp. of 0.1%
10 year 4.13%
0.6% vs expectations of 0.7%
Core was perfect 0 vs exp. of 0.1%
10 year 4.13%
Highlights
August's PPI showed pressures but less than expected. The overall index, expected to jump 0.7%, rose 0.6% but the core rate, seen up a tenth, was unchanged. Excluding energy, producer prices actually dipped a tenth.
But year-on-year rates are running hot, up 5.1% overall and up 2.4% for the core, the latter down 4 tenths from July but still above the 2.0% area that Federal Reserve officials keep their eye on.
Energy prices jumped 3.7% in the month, adding to July's 4.4% jump. Gasoline was up 9.5%. Further gains are now underway. These numbers remember are month-to-month changes! On the plus side, auto prices reversed July's jump falling 1.3% while communications equipment slipped 0.3%.
Today's data are pre-Katrina but are still important. Bonds firmed following release of the data, that included at 8:30 a.m. ET a smaller-than-expected July trade gap.
Price pressures were evident going into the hurricane shock. New increases in fuel and food, along with supply chain snags following the storm, point to even further price pressures ahead. Another jump in Thursday's CPI is expected, and today's PPI won't change expectations.
August's PPI showed pressures but less than expected. The overall index, expected to jump 0.7%, rose 0.6% but the core rate, seen up a tenth, was unchanged. Excluding energy, producer prices actually dipped a tenth.
But year-on-year rates are running hot, up 5.1% overall and up 2.4% for the core, the latter down 4 tenths from July but still above the 2.0% area that Federal Reserve officials keep their eye on.
Energy prices jumped 3.7% in the month, adding to July's 4.4% jump. Gasoline was up 9.5%. Further gains are now underway. These numbers remember are month-to-month changes! On the plus side, auto prices reversed July's jump falling 1.3% while communications equipment slipped 0.3%.
Today's data are pre-Katrina but are still important. Bonds firmed following release of the data, that included at 8:30 a.m. ET a smaller-than-expected July trade gap.
Price pressures were evident going into the hurricane shock. New increases in fuel and food, along with supply chain snags following the storm, point to even further price pressures ahead. Another jump in Thursday's CPI is expected, and today's PPI won't change expectations.
This next report will be fed friendly, some will call for the fed to back off inflation has eased. Crude has fallen, but metals (copper) is making new highs.
actually imo this will be the first report that will show a higher core number then the previous months --- just my guess. 