Prior YoY was +3.0% PPI M/M +0.5% vs 0.3% expectedPrior +0.5% (revised to 0.4%)
Core PPI
Core PPI Y/Y +3.6% vs +3.0% expectedPrior +3.3% Core PPI M/M +0.8% vs +0.3% expectedPrior Core PPI MoM +0.7% (revised to 0.6%)PPI Ex Foor/Energy/Trade YoY 3.4% vs 3.5% last monthPPI Ex Food/Energy/Trader MoM 0.3% vs 0.3% last month (revised from 0.4% last month)
For the second month in a row, the PPI came in higher than expectations. The data suggests the despite all the chatter about inflation moving lower, it is still sticky and is what is bothering people. The inflation from the pandemic is irrelevant. Cost/Push inflation continues to move higher, and that is not a good thing.
US stocks are sharply lower with the Nasdaq down -245 points. The Dow is down -571 points. The S&P is down -63 points.
Yields in the US are still lower on the day with the
10 year below 4.0% at 3.984%. 2 year yield is down -4.2 basis points at 3.405%.
Gold moved up to test swing area resistance:
Silver moved up to test the 50% of the move down from the all-time high to the low reached in February.
WHAT THE US PPI MEASURES?
The Producer Price Index (PPI) is an economic indicator that measures the average change over time in the selling prices received by domestic producers for their output. In simpler terms, it tracks inflation from the perspective of the seller/business rather than the consumer like the Consumer Price Index (CPI).
This article was written by Greg Michalowski at investinglive.com.