Yesterday’s report on the Consumer Price Index (CPI) was horrible. Today’s results for the PPI are just as bad.
Yesterday’s inflation as measured by the CPI was horrible. Biden’s inflation is at a 40-year high. Not since 1981 have we seen such high inflation.
Today the Bureau of Labor Statistics (BLS) released its latest results for the Producer Price Index in June. This measurement is the largest increase since March when the PPI was reported at an all-time high. The BLS shares:
The Producer Price Index for final demand increased 1.1 percent in June, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. This rise followed advances of 0.9 percent in May and 0.4 percent in April. (See table A.) On an unadjusted basis, final demand prices moved up 11.3 percent for the 12 months ended in June, the largest increase since a record 11.6-percent jump in March 2022.
In June, three-fourths of the advance in the index for final demand was due to a 2.4-percent rise in prices for final demand goods. The index for final demand services increased 0.4 percent.
Prices for final demand less foods, energy, and trade services moved up 0.3 percent in June after advancing 0.4 percent in both May and April. For the 12 months ended in June, the index for final demand less foods, energy, and trade services rose 6.4 percent.
Final demand goods: The index for final demand goods moved up 2.4 percent in June, the sixth consecutive rise. Nearly 90 percent of the June increase can be traced to a 10.0-percent jump in prices for final demand energy. The indexes for final demand goods less foods and energy and for final demand foods advanced 0.5 percent and 0.1 percent, respectively.
Product detail: Over half of the June increase in the index for final demand goods is attributable to gasoline prices, which jumped 18.5 percent. The indexes for diesel fuel, electric power, residential natural gas, motor vehicles and equipment, and processed young chickens also moved higher.
Stock prices are expected to fall as a result and a 100 basis point increase in rates is now expected.
Stock index futures are moving lower Thursday, as the June Producer Price Index came in hotter than anticipated.
Following a hot CPI, a full-point Fed rate hike this month is now priced in by the markets. CME FedWatch puts the likelihood of 100 basis points to 87%.
Biden has no idea what he is doing if his goal is to build the US economy. If his goal is to destroy the US economy, he is right on track.
The post BIDEN ECONOMY: PPI Inflation Index Out Today – Highest Since March All-Time High appeared first on The Gateway Pundit.