PPI

Overall, the July PPI report shows an increasingly stable and muted inflation picture.

Overall, the June PPI reading saw continued normalization towards pre-pandemic rates of input cost growth. PPI for All Commodities increased by 0.1% month over month in June, for a 0.6% year over year increase.

This month’s data also shows how important it will be to parse the distinction between the “end of the supply chain resolution disinflation” and growing disinflationary pressure from slackening demand for upstream inputs.

PPI for All Commodities increased by a substantial 0.9% month over month, representing an increase of 0.1% year over year. We may be reaching the very tail end of any remaining deflation from post-pandemic supply chain resolution.