Friday, July 12, 2013

It's The Economy Stupid: PPI is hot!

 

Economic Event

Period

Economic Survey

Actual Reported

Original Prior

Revised Prior

Producer Price Index MoM

JUN

0.5%

0.8%

0.5%

 

PPI Ex Food & Energy MoM

JUN

0.1%

0.2%

0.1%

 

Producer Price Index YoY

JUN

2.1%

2.5%

1.7%

 

PPI Ex Food & Energy YoY

JUN

1.6%

1.7%

1.7%

 

 

Drop it like it’s hot.

 

PPI was higher than economist’s expectations across the board.  Month over Month, Year over Year, with Food & Energy or without Food & Energy.

 

PPI, which measures wholesale prices in the U.S. rose more than projected in June, reflecting higher costs for energy and automobiles.   The 0.8 percent gain in the producer price index was the biggest since September and followed a 0.5 percent rise the prior month, a Labor Department report showed today in Washington. The median estimate in a Bloomberg survey of 73 economists called for a 0.5 percent gain. The so-called core measure, which excludes volatile food and fuel, increased 0.2

percent, also more than forecast.

 

The data also showed limited cost pressures at the earlier stages of production, indicating demand for raw materials is being restrained by slower growth in China and weakness in Europe. That helps explain why Federal Reserve policy makers project inflation is likely to be at or below the central bank’s goal.

 

John Broussard

Assistant State Treasurer

Chief Investment Officer

State of Louisiana

Department of the Treasury

225-342-0013

jbroussard@treasury.state.la.us

 

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