Wholesale Inflation Hits 5.4% Amid Energy Shock
US producer prices accelerated to 5.4% year-over-year driven by energy shocks, with new data revealing that the Fed is set to vote on rates without having seen its key PCE inflation metric. Meanwhile, real wages have flatlined and gasoline prices have hit $4.16, intensifying concerns about household purchasing power ahead of the upcoming consumer price report.
24/7 Wall St. highlights a critical timing mismatch where the Fed must vote on rates before seeing its preferred PCE gauge, while noting that real hourly earnings have stagnated at 11.31 despite energy costs rising 15.3% year-over-year. The report also flags that gasoline prices have climbed to $4.16 per gallon, reflecting the delayed impact of wholesale diesel surges on consumer budgets.
Source: GN markets/inflation (en-US)GN markets/inflation (en-US) reveals that airfares jumped 4.2% and hospital care costs rose, both of which are components of the Fed's preferred inflation gauge, further increasing the likelihood of a rate hike. The report also notes that U.S. oil prices topped $100 a barrel on renewed Middle East tensions, while President Trump predicted oil prices would only fall after the November midterm elections.
Source: GN markets/inflation (en-US)Per GN markets/inflation (en-US), July’s monthly PPI print was revised upward to 0.1% from zero, highlighting stronger underlying momentum than initially reported. The data also shows intermediate demand goods rising 11.5% annually, with unprocessed items climbing 12.8% over the past year, indicating deepening supply chain pressures.
Source: GN markets/inflation (en-US)According to GN auto markets/indices: stock index, the hotter-than-expected inflation data triggered a sharp reversal in equity markets, with Taiwan index futures dropping over 700 points and the Philadelphia Semiconductor Index sliding 2.2%. The report also highlights that diesel prices spiked 24.1% month-over-month, a specific driver behind the broader energy cost surge.
Source: GN auto markets/indices: stock indexGN markets/inflation (en-US) reports that core producer inflation, excluding volatile categories, accelerated to 4.6% year-over-year, while rising costs for electronic components—driven by AI infrastructure expansion—added another 3.4% monthly pressure. The report notes that despite these spikes, the overall monthly increase of 0.4% came in line with economist forecasts.
Source: GN markets/inflation (en-US)Producer prices surged 0.4% in August, driven by a 24.1% spike in diesel costs following renewed conflict in the Middle East.
Source: GN markets/inflation (en-US)
