{"id":75436,"date":"2025-08-17T02:48:28","date_gmt":"2025-08-17T02:48:28","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/75436\/"},"modified":"2025-08-17T02:48:28","modified_gmt":"2025-08-17T02:48:28","slug":"producer-prices-surge-complicating-the-rate-cut-outlook","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/75436\/","title":{"rendered":"Producer Prices Surge, Complicating The Rate Cut Outlook"},"content":{"rendered":"<p>There&#8217;s no question that today&#8217;s Producer Price Index came in surprisingly hot. Both the headline and core numbers were 0.9% vs forecasts of 0.2%.\u00a0 The biggest impact came from &#8220;trade services&#8221; which speaks to wholesalers and retailers marking up margins. There were similar anecdotes in other categories with BLS specifically calling out machinery\/equipment, portfolio management, and vegetables. This was enough to erase a moderate overnight rally and cause some weakness in bonds, but it&#8217;s not nearly as big of a reaction as we&#8217;d be seeing if Tuesday&#8217;s CPI reported a similar beat.\u00a0 PPI is a much more volatile data series and the components that flow through to PCE inflation suggest a smaller spike in consumer inflation. Nonetheless, upward movement in consumer inflation is eroding some of the recent improvement in Fed rate cut expectations.\u00a0\u00a0<\/p>\n<p><img decoding=\"async\" src=\"https:\/\/www.newsbeep.com\/ca\/wp-content\/uploads\/2025\/08\/689df940fa7cd49d1f8ff3b0.png\" alt=\"20250814 open2.png\" style=\"max-width: 500px; border: 0;\"\/><\/p>\n<p><img decoding=\"async\" src=\"https:\/\/www.newsbeep.com\/ca\/wp-content\/uploads\/2025\/08\/689df93cfa7cd49d1f8ff3af.png\" alt=\"20250814 ppi.png\" style=\"max-width: 500px; border: 0;\"\/><\/p>\n<p><img decoding=\"async\" src=\"https:\/\/www.newsbeep.com\/ca\/wp-content\/uploads\/2025\/08\/689ddbabfa7cd49d1f8ff3a5.png\" alt=\"20250814 ppi components.png\" style=\"max-width: 500px; border: 0;\"\/><\/p>\n<p><img decoding=\"async\" src=\"https:\/\/www.newsbeep.com\/ca\/wp-content\/uploads\/2025\/08\/689df945fa7cd49d1f8ff3b1.png\" alt=\"20250814 open3.png\" style=\"max-width: 500px; border: 0;\"\/><\/p>\n","protected":false},"excerpt":{"rendered":"There&#8217;s no question that today&#8217;s Producer Price Index came in surprisingly hot. Both the headline and core numbers&hellip;\n","protected":false},"author":2,"featured_media":75437,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[45,49,48,100],"class_list":["post-75436","post","type-post","status-publish","format-standard","has-post-thumbnail","category-markets","tag-business","tag-ca","tag-canada","tag-markets"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/75436","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=75436"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/75436\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/75437"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=75436"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=75436"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=75436"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}