00:00Coming in hot indeed, John, 1.4 percent for the headline PPI on a month-over-month basis.
00:07On a year-over-year basis, that pushes the index to 6 percent.
00:13The core rate comes in up 1 percent, that is ex-food and energy,
00:18which pushes the core rate on a year-over-year basis to 5.2 percent.
00:22And if you exclude trade, basically the margins for retailers and wholesalers,
00:28you've got a six-tenths rise and a 4.4 percent annual rate.
00:33Now, in terms of the overall PPI, the index for goods is up by 1.2 percent.
00:43That is for services, rather.
00:46Prices for goods moved up 2 percent.
00:49There was a feeling that we might see a little bit of a softer goods reading
00:55because of the tariffs sort of peaking,
00:57but it doesn't look like that has happened.
00:59We've got a strong read there, and we've got a strong read on services.
01:04And to quote Star Wars, these are not the droids that Kevin Warsh is going to be looking for.
01:09What jumps out to you right now?
01:11Well, air transportation is one of the things that goes into the PCE,
01:16so everybody watches that.
01:18And air transportation for passenger services was up 1 percent during the month,
01:24and for freight was up by, yeah, I'm doing the same thing you did, John,
01:30with a double take here, 3.6 percent.
01:33The Bureau of Labor Statistics also says one of the big increases,
01:37and of course, obviously, energy driving everything on the good side,
01:40was for freight transportation as diesel prices have gone way up.
01:45But also margins for retailers and wholesalers, particularly for equipment, were higher.
01:51So this shows some underlying price pressure across the board.
01:55There are some people who were thinking that the PCE might come in a little lower
01:58because some of the categories from CPI that go into that were a little softer.
02:02But this may not be the case given what we're seeing here with the PPI.
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