Producer Price Index for June 2022

 

Time for more painful inflationary discussion. The BLS has now released the June Report. (historical releases)

The Producer Price Index for final demand increased 1.1 percent in June, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. This rise followed advances of 0.9 percent in May and 0.4 percent in April. (See table A.) On an unadjusted basis, final demand prices moved up 11.3 percent for the 12 months ended in June, the largest increase since a record 11.6-percent jump in March 2022.

So yes... okay, gasoline was a factor and those prices are now falling. As someone stated, this is old data and gasoline prices have been falling for 30 days. Except... backing out the energy impact, it is still 8.5%. It was 8.6% last month, so golly, gee, wow... things are improving? /S 

While there does seem to be "some" easing, the outlook going forward is still inflationary. Golly, who could have guessed that?

The various inflation numbers, as it stands now. Pink is higher!!

The U.K. and Canada are not updated for June in this chart, but here goes...

Yep, it is global inflation, but it was mostly the USA (using EU methodolgy)... in August, compared to the EU, with some narrowing of that gap in January. However the gap has narrowed significantly since the war began. It boils down to just another excuse that doesn't hold up over time. 

In August the EU was at 3.4% and using the EU method, the USA was at 6.2%. In January, the USA was at 8.0% using the EU method and the EU was 5.1%. The EU is currently at 8.6% and my estimate of their methodology has the USA at 9.7%. 

Wow, the gap has narrowed sufficiently to say it is a global problem. Let's mix apples and orange to find an excuse that will dazzle the masses. /s

Tomorrow presents us with the Advance Retail Report. I cannot see how it could be positive. Certainly the numbers will "shine", but they are not inflation adjusted. I will attempt to do that.