by John Carney
Breitbart.com
Inflation Also Rises
When we warned yesterday that there were still upside risks to inflation despite two months of weaker than expected reports, we did not expect to see our view confirmed the very next day.
Yet that’s exactly what happened in today’s producer price index (PPI) report from the Bureau of Labor Statistics. The index for final demand jumped by 0.2 percent in June, twice what was expected. In addition, there were significant upward revisions to the previous month’s PPI, moving the headline final demand up from a 0.2 percent decline to a flat reading.
The year-over-year PPI gain for PPI rose to 2.6 percent, the highest 12-month increase since March 2023. The index has now been rising for five consecutive months, calling into question the idea that inflation is on a path to two percent.