The cost to produce all monitored goods and services has only risen 2.3% over the last year. That’s less than expectations and even lower than last month’s 2.7% gain. Excluding food and energy, the Core PPI is up 3.2%. That means that food and energy are only up 2.2% from 12 months go–which is SUPER close to the Fed 2.0% target. That manufacturing costs are diminishing and transportation expenses are falling would indicate that the CPI should follow suit in next month’s report.
Jobless Claims came in showing that 264,000 new people filed for Unemployment last week, this is 25,000 more than last week. A cooling labor market helps inflation settle as well.
Mortgage rates continue to zig-zag sideways as the really ugly debt ceiling looms ever closer. So we may move from one crisis to another.
