{"id":68061,"date":"2024-05-14T14:53:44","date_gmt":"2024-05-14T19:53:44","guid":{"rendered":"https:\/\/olduvai.ca\/?p=68061"},"modified":"2024-05-14T14:53:44","modified_gmt":"2024-05-14T19:53:44","slug":"us-producer-prices-accelerating-at-fastest-rate-in-12-months-wall-street-reacts","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=68061","title":{"rendered":"US Producer Prices Accelerating At Fastest Rate In 12 Months, Wall Street Reacts…"},"content":{"rendered":"
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US Producer Prices Accelerating At Fastest Rate In 12 Months, Wall Street Reacts…<\/a><\/h3>\n<\/header>\n
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Ahead of tomorrow’s CPI, traders are eyeing this morning’s Producer Prices for any hints that the disinflation trend will return…or not.<\/p>\n

The answer is “not!”<\/p>\n

April Producer Prices rose 0.5% MoM (vs +0.3% exp),<\/strong>\u00a0with March’s +0.2% MoM revised down to -0.1% MoM. The downward revision did not stop the YoY read rising to 2.2% (from +2.1% in March)…<\/p>\n

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Source: Bloomberg<\/em><\/p>\n

This is the highest YoY read since April 2023 and is the fourth hotter than expected headline PPI print…<\/strong><\/p>\n

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Source: Bloomberg<\/em><\/p>\n

Producer Prices have been aggressively downwardly revised for 4 of the last 7 months…<\/p>\n

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Source: Bloomberg<\/em><\/p>\n

Services costs soared,<\/strong>\u00a0dominating April’s PPI gains with Energy the second most important factor.\u00a0Food prices actually declined on a MoM basis.<\/strong><\/p>\n

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Source: Bloomberg<\/em><\/p>\n

On a YoY basis, headline PPI’s rise was dominated by Services (rising at their hottest since July 2023).\u00a0For the first time since Feb 2023, none of the underlying factors were negative on a YoY basis…<\/strong><\/p>\n

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Source: Bloomberg<\/em><\/p>\n

On a 6-month annualized rate, Final Demand Core Services PPI is rising at its highest since Q3 2021…<\/p>\n

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Source: Goldman Sachs<\/em><\/p>\n

After last month’s farcical ‘seasonally adjusted’ gasoline price,\u00a0April saw the PPI Gasoline index rise (with actual prices at the pump) but still has a long way to go…<\/strong><\/p>\n

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Source: Bloomberg<\/em><\/p>\n

Core PPI was worse – rising 0.5% MoM (more than double the +0.2% MoM expected)\u00a0<\/strong>– which pushed the Core PPI YoY up to +2.4%…<\/p>\n

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Source: Bloomberg<\/em><\/p>\n

And finally US PPI Final Demand Less Foods Energy and Trade Services rose by 0.4% MoM and 3.1% YoY (the highest in 12 months).<\/p>\n

Worse still the pipeline for primary PPI is not good as intermediate demand is starting to accelerate…<\/p>\n

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Source: Bloomberg<\/em><\/p>\n

Here are Wall Street\u2019s reactions to PPI:<\/p>\n

Chris Larkin at E*Trade from Morgan Stanley:<\/p>\n

…click on the above link to read the rest of the article…<\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

US Producer Prices Accelerating At Fastest Rate In 12 Months, Wall Street Reacts… Ahead of tomorrow’s CPI, traders are eyeing this morning’s Producer Prices for any hints that the disinflation trend will return…or not. The answer is “not!” April Producer Prices rose 0.5% MoM (vs +0.3% exp),\u00a0with March’s +0.2% MoM revised down to -0.1% MoM. […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[13351,18977,4318],"class_list":["post-68061","post","type-post","status-publish","format-standard","hentry","category-economics","tag-price-inflation","tag-producer-prices","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/68061","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=68061"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/68061\/revisions"}],"predecessor-version":[{"id":68062,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/68061\/revisions\/68062"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=68061"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=68061"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=68061"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}