#HotJulyPPI
๐ ๐ฅ US July PPI Surges โ Inflation Isnโt Done Yet! ๐ฅ
The latest Producer Price Index (PPI) numbers are out โ and they just threw a curveball at the markets.
๐ฅ +0.9% MoM โ Biggest monthly jump since June 2022
๐ฅ +3.3% YoY โ Highest annual gain in 5 months
๐ฅ Core PPI +0.6% โ Strongest since March 2022
Whatโs driving the heat?
Services costs shot up 1.1% ๐ (trade margins, equipment wholesaling, portfolio management)
Goods prices rose 0.7% ๐ข๏ธ๐ฅฆ โ with fresh/dry veggies exploding +38.9%
Energy prices crept higher, adding fuel to the fire โฝ
โ ๏ธ Why it matters:
This isnโt just a number โ itโs a signal. The Fedโs September rate cut hopes? They just got complicated. Inflationary pressure at the producer level often trickles down to consumersโฆ and that means the fight against inflation isnโt over.
๐ Market reaction:
Big caps? Mostly shrugged it off โ S&P 500 even hit a record high.
Small caps & housing stocks? Feeling the pinch.
Bond yields spiked as traders recalibrated for a slower easing path.
๐ก Takeaway:
When PPI jumps this hard, itโs a warning shot. Keep an eye on CPI next week โ if consumer prices echo this trend, the Fedโs hand might be forced to stay tighter for longer.
๐จ Your move? Stay diversified, watch the macro data, and remember: inflation waves donโt always hit instantlyโฆ but they hit hard.
