Wholesale prices were flat in July, below expectations for 0.2% increase
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- July PPI came in flat, below the 0.2% Dow Jones consensus estimate, after a revised -0.1% June decline
- Core PPI excluding trade services rose 0.4%, while annual headline PPI sits at 4.7% and core at 4.2%
- Fed rate-hike odds shifted from September to October or December after the report, per trader pricing
- Stock futures rose and Treasury yields fell following the release
- July CPI rose just 0.1% (reported Wednesday), with annual headline at 3.4% — still well above the Fed's 2% goal
- Chris Rupkey of Fwdbonds said pipeline pressures haven't added to consumer inflation for two consecutive months
- Initial jobless claims climbed to 209,000 for the week ended Aug. 8, above the 204,000 estimate
Why it matters: The flat July PPI extends a two-month streak of tame wholesale inflation, and traders have already moved rate-hike bets from September to October or December. But annual headline PPI at 4.7% and CPI at 3.4% remain more than double the Fed's 2% target — the 'cooling' story is a monthly narrative, not a victory lap.
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