Posted on 09/12/2024 7:48:49 AM PDT by Miami Rebel
The numbers: U.S. wholesale prices showed a mild increase in August and reinforced the idea the rate of inflation is returning to low prepandemic levels.
The moderate increase in wholesale costs follows a similarly mild rise in consumer prices last month. With inflation slowing, the Federal Reserve is widely expected to cut interest rates next week.
The producer-price index rose 0.2% last month, the government said Thursday. That matched the forecast of economists polled by the Wall Street Journal.
The increase in wholesale prices in the past year slowed to 1.7% from 2.1% in the prior month and touched the lowest level in six months.
A separate measure of wholesale prices that strips out volatile food and energy costs and trade margins advanced at a slightly faster 0.3% pace.
The 12-month rate edged up to 3.3% from 3.2%.
Key details: The cost of goods were unchanged in August and they are flat over the past year.
The price of services rose 0.4% in August, leaving the 12-month increase at 2.7%. That’s closed to the annual prepandemic average.
The wholesale cost of partly finished goods fell slightly, and raw-material prices sank by 3.7% largely because of cheaper energy.
The PPI report captures what companies pay for supplies such as fuel, packaging and so forth. These costs often feed into the price of consumer goods and services and give a sense of whether inflation is rising.
Big picture: The rate of inflation is getting closer to the Federal Reserve’s 2% annual goal, putting the central bank on track to cut interest rates for the first time since the pandemic.
All the inflation of the past few years hasn’t gone away, of course, but prices are no longer rising rapidly. Lower inflation and reduced borrowing rates should help to boost the economy.
(Excerpt) Read more at marketwatch.com ...
In before the correction.
Oh Good
MarketWatch, the house organ of the DNC
Where Communists masquerade as capitalists
Charming
MarketWatch is owned by Murdoch, so I’m not sure of your point.
But if you want the PPI numbers you have one hundred other sources which will all provide you with the same story.
Wholesale inflation eases again
*************
A totally misleading and deceptive headline.
Core PPI rose 0.3% MoM (more than expected) and YoY core PPI upturned.
MarketWatch should be ashamed.
The third quarter will always have lower inflation. SS COLA is figured on July, August, and September (next month Sept will be low too, guaranteed)
Lib media will spin this as a decrease in prices.
The official government statistics, or your own lying eyes when you pay for groceries, utilities, taxes, insurance, gasoline, medical bills, clothing, or repairs to anything.
General prices for everything have been rising at a much higher rate than claimed by the official statistics. That is what inflation does. Government causes inflation by debasing the currency to fund excessive spending.
Lowering interest rates is a gimmick to juice the economy before the coming election. It will loot people with savings to the benefit of a small group of people who can get the privileged rates on new loans.
Inflation continues.
You don’t have to bother with spin. The numbers are the numbers. Obviously inflation has dramatically slowed.
By the way, the only way prices will actually go down in aggregate (some prices like those for energy and industrial metals already are,) would be a recession. If the Fed doesn’t drag its heels the chances of that are pretty slim.
You’re painting with a broad brush and in doing so you’re covering up weaknesses in the runaway inflation story.
Natural gas is down 16% in the last 12 months.
Gasoline is down 28%.
Steel is down 17%.
Soybeans are down 26%.
Obviously these are wholesale prices and obviously there are plenty of markets with upward pricing, but its inaccurate to overstate inflation. I wanted to offer the price actions listed above as a counterpoint to the “who are you going to believe” argument, since these are all public, listed markets not susceptible to government manipulation.
(By the way, as to groceries, Adobe’s Digital Price Index showed that the price of groceries purchased online dropped 3.7% in August, the largest one month decline since the index was created ten years ago.)
>> MarketWatch is owned by Murdoch, so I’m not sure of your point.
That MAKES the point. Murdoch and especially his spawn are incorrigible leftists. MarketWatch is indeed a wholly owned dnc subsidiary! Anything they write is calculated to reinforce “the narrative”.
OK, pick another source for PPI. Or ignore PPI altogether. Have a great day!
It’s not just the number, it’s the number plus the manipulative spin around it. And as others have pointed out, one context-free PPI number means little. With debt > $35 trillion and a highly volatile world it will take very little for inflation to reoccur, with a vengeance.
You have a nice day as well! I pray your investments succeed.
John Williams who used to compile inflation statistics for 30 years states in his website, whatever they say it is- ADD 8 percent. He has documented for years items pulled when they get to high.
Our government is lying to us, now in every, single sector….the first major Inflation number Jerry rigging started during Nobamas reign.
How to handle a government that spews lies all day long? Tar, feathers, more?
So when do wages catch up?
markets have stepped away from hopes of a 1/2 point cut due to CPI. 1/4 more likely.
I don’t know where you shop but prices at my local Shop Rite, owned by the Wakefern Food Corporation are through the roof, especially for beef.
I’d like to introduce these dipshits to the statistics in my wallet. You can make the data say anything you want if you torture it long and hard enough.
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