On the global side, the United States released its August Producer Price Index (PPI), which showed more subdued inflation than analysts had predicted. Annualized inflation at the producer level just hit 2.6%. That’s a decline from the surprising 3.3% figure we saw in July, an indication that inflationary pressures are continuing to ease. The key year-over-year number, excluding the volatile food and energy sectors, printed at 2.8%, a decline from a revised 3.4% last month.
On a monthly basis, the PPI was down 0.1%. This drop and the all-time count were less than analysts’ predictions, shedding light on a possible bounce in economic conditions. The Consumer Price Index (CPI) will come out on Thursday. We hope this update will enlighten you further about where inflation is at nationally and around the country.
On social media platform Truth Social, former President Donald Trump commented on the latest PPI data, stating, “Just out: No Inflation!!! Too Late must lower the RATE, BIG, right now. Powell is a total disaster, who doesn’t have a clue!!!”
The August PPI report suggests that inflationary pressures may be easing, which could influence the Federal Reserve’s future monetary policy decisions. This release will be especially important as the Producer Price Index (PPI) is often used by economists as a barometer for future consumer prices.
That annualized inflation number of 2.6% represents a huge reversal from the trend we’ve experienced over the last 12 months. All of this occurring as the economy is jolted with other pandemic and war-related challenges pushing prices through the roof. The drop from July’s numbers should be welcome news to consumers and businesses as well.
It wasn’t just the PPI numbers that President Trump was unhappy with. He voiced his concerns over large downward revisions to new jobs estimates, which he believes reflect poorly on current economic management.
Trump’s frustrations reached a fever pitch last week when a U.S. court sided with Federal Reserve official Lisa Cook. Although he has tried to remove her under the aegis of fraud charges, she will remain on the Board, in spite of his efforts. Cook’s appeal Trump’s decision on Cook and her stay on Trump’s decision makes for a bizarre and rocky road ahead for any future monetary policy discussions.