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Wholesale Inflation Inches Up in July, Below Expectations
2024-08-14 05:50:08
Economy
Inflation
Business

Wholesale Inflation Inches Up in July, Below Expectations

July saw a modest 0.1% increase in wholesale inflation, falling short of predictions. The uptick, potentially prompting a Federal Reserve interest rate cut, was led by a 0.1% rise in the Producer Price Index.

Goods prices surged by 0.6%, driven by energy costs, while services prices declined, particularly in trade services. The UK also faces its first inflation rise this year, expected to reach 2.3% in July due to various factors including higher airfares and grocery prices.

Amidst these changes, consumer experiences of rising costs are becoming more prevalent in everyday purchases.

Related news on that topic:

Market Awaits Key Inflation Data as Stocks Rise

Investors are eagerly awaiting the release of producer and consumer price index reports, as these could have a significant impact on the markets. The retail sales data will also be closely watched. While some indicators suggest that economic growth is slowing, experts believe that a recession may not be imminent. Stock futures are little changed, with European stocks and Asian stocks both seeing gains. The British pound, US Treasuries, and the dollar are holding steady. Brent crude oil prices remain near $82, and there are concerns about Israel's sovereign debt as it gets cut. In the US, the VIX volatility index has spiked, and corporate debt markets are seeing a jump in yields. Overall, investors are anticipating the Federal Reserve to cut rates, with 93% expecting lower short-term rates. The market is cautiously optimistic, but concerns about a recession still linger.

Consumers' Resistance to High Prices Helps Curb US Inflation Surge

Major US corporations like Amazon, Disney, and Yum Brands observe a shift as consumers opt for cheaper alternatives, refusing to accept elevated prices. This price-conscious consumer behavior, recognized by Federal Reserve's Tom Barkin, is aiding in curbing inflation, with the consumer price index expected to show a 3.2% year-over-year increase in July. Factors like consumer caution and pandemic-era pricing power, as mentioned by Jared Bernstein of the Biden administration, play a role. Economist Isabella Weber's concept of 'sellers' inflation' explains how supply chain issues justified price increases that consumers are now challenging. Noteworthy is online retailer Dormify offering discounts, while the Fed's Beige Book reports similar trends across various districts. Yum Brands also felt the impact, with a 1% decline in sales in the April-June quarter at established stores.

Read 33 more recent news on this topic

The press radar on this topic:

CNBC
13. August 2024 um 12:33

Wholesale inflation measure rose 0.1% in July, less than expected

Economy
Finance
Wholesale inflation rose 0.1% in July, less than expected, potentially prompting Federal Reserve to lower interest rates. Producer price index increased 0.1%, with core PPI flat. Headline PPI rose 2.2% year-over-year, while goods prices jumped 0.6% due to an energy surge. Services prices fell, with trade services down 1.3%. Stock futures rose post-release.
seekingalpha
14. August 2024 um 00:30

Producer Price Index: Wholesale Inflation Cools In July

Economy
Finance
The BLS's new "final demand" PPI series only goes back to November 2009 for headline and April 2010 for core, so the analysis focuses on the legacy "finished goods" PPI which shows 0.5% monthly and 1.8% annual growth, with core up 0.1% monthly and 2.2% annually.
The Street
16. August 2024 um 23:04

New report sounds alarm on rising cost of these essential staples TheStreet Daily Newsletter

Economy
Finance
Whether shopping at niche specialty stores or big box discounters like Walmart or Costco, consumers have noticed their dollar doesn't stretch as far, with prices up on almost everything from electricity to chocolate.
The Guardian
14. August 2024 um 14:39

City braces for first rise in UK inflation this year – business live

Economy
Finance
Politics
UK inflation to rise to 2.3% in July, first increase this year, driven by higher air fares, package holidays, hotels, smaller energy price decline, and rising grocery prices. Supermarkets raising prices, poorest hit hardest. Bank of England may be less willing to cut rates, while New Zealand's central bank cut rates. Monetary Policy Committee's decision on further easing depends on inflation outlook. BoE policymaker Catherine Mann warns battle to calm inflation is not over, money markets predict..
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