Core PPI fell in July for the first time since early 2017, registering a 0.1% decline versus a 0.1% consensus gain. The annual rate was 2.1%, also the lowest since 2017.
Stripping out trade services as well, the index fell (-0.1%) for the first time since 2015. The annual rate was 1.7% versus +2.1% in June.
Adding in food and energy, PPI gained 0.2% MoM, even though oil prices fell in July. To complicate things, the cost of goods rose 0.4% in July.
Bottom line, these data are not reflective of a strong economy, let alone the “greatest economy in the history of America.” This is an economy which is struggling despite historically low interest rates.
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