The United States June PPI far exceeded expectations and set a record since 1982!
html data released on July 14 showed that the US PPI in June increased by 7.3% year-on-year, with an expected increase of 6.7%, and the previous value increased by 6.6%.
The United States' core PPI increased by 5.6% year-on-year in June, with an expected growth of 5.1%, and the previous value increased by 4.8%.
Among them, the commodity price index rose by 1.2% month-on-month, and the service price index rose by 0.8% month-on-month. Specifically:
commodity PPI price index:
- industrial chemical prices rose 4.5%;
- gasoline, meat, electricity, processed poultry and motor vehicles rose;
- oilseed index fell 11.7%, and the prices of diesel, distilled liquor and bottled liquor (excluding brandy ) fell.
service PPI price index:
- 6 final demand service index increased by 20%;
- automotive and auto parts retail sales increased by 10.5%.
- wholesale of machinery, vehicles, hardware, building materials and retail supplies, room rental, professional and commercial equipment wholesale, passenger traffic (partially) rose;
- clothing wholesale fell by 6.0%, and the revenue of wholesale of mechanical equipment parts and supplies and gambling (partially) decreased.
The biggest problem facing
is that as raw material prices soar, corporate profit margins will decline sharply, and this situation will sooner or later be transmitted to consumers. After the announcement of
, S&P 500 index futures rose 0.37%, Nasdaq futures rose 0.66%, and Dow futures rose 0.21%.
USD index fell slightly.
Inflation may not have reached its peak
Wall Street News previously stated that judging from the current inflation performance, even if supply and demand recover with the seasonal rate, November may still face the challenge of new highs. If the supply and demand gap cannot be repaired to pre-epidemic levels, inflation that deviates significantly from policy targets may continue until at least until the first quarter of next year.
High inflation is not without harm to demand and economic recovery. As inflation continues to exceed expectations, this undoubtedly will also roast the Fed on the fire. Recently, the Fed's attitude towards inflation has changed a lot. On the one hand, the differences within the Federal Reserve on policy exits have expanded rapidly, and on the other hand, policy makers are also increasing in discussions on housing prices and financial stability.
The high fever and non-regressive inflation may cause the Federal Reserve to officially release the signal of discussing reducing the scale of asset purchases in advance. Its discussion process can be shortened. Pay close attention to Powell's statement at the Federal Reserve's interest rate meeting in July 1. And we should also be prepared for inflation-driven volatility.
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