The BLS released their PPI report today and it shows that inflation is still stubbornly resilient.
The Producer Price Index for final demand increased 0.3 percent in July, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. Final demand prices were unchanged in June and declined 0.3 percent in May. (See table A.) On an unadjusted basis, the index for final demand advanced 0.8 percent for the 12 months ended in July.
In July, the increase in final demand prices was led by a 0.5-percent rise in the index for final demand services. Prices for final demand goods edged up 0.1 percent. The index for final demand less foods, energy, and trade services moved up 0.2 percent in July, the largest increase since a 0.3-percent rise in February. For the 12 months ended in July, prices for final demand less foods, energy, and trade services advanced 2.7 percent.
Final Demand Final demand services: The index for final demand services increased 0.5 percent in July, the largest rise since moving up 0.5 percent in August 2022. Leading the broad-based advance in July, prices for final demand services less trade, transportation, and warehousing climbed 0.3 percent. Margins for final demand trade services rose 0.7 percent, and the index for final demand transportation and warehousing services moved up 0.5 percent. (Trade indexes measure changes in margins received by wholesalers and retailers.)
BLS.gov
It doesn’t help the situation that oil prices have been going up and thousands of boomers retire every month depleting the labor force. Right now, we think the best thing to do is invest in short term T-bills while we wait for the Fed’s next meeting which may result in another rate hike.
Stay tuned, stay profitable and stay solvent…