❤️‍🔥Yesterday CPI came in hot. Today PPI is on fire.


April PPI came in at 1.4% month over month. Wall Street expected 0.5%. Almost three times higher.
PPI hit 6.0%. Up from 4.3% last month. Up from 4.3% just two months ago.
Core PPI which strips out food and energy hit 5.2% annually. Expected 4.3%. Previous was 4.0%.
Three months in a row. Every inflation measure moving in the wrong direction.
Here is what this means in plain English. Businesses are paying 6% more for their supplies than a year ago. That cost does not disappear. It gets passed to consumers. Next month's CPI will be even hotter than yesterday's.
The Fed needs inflation near 2% to cut rates. It is sitting at 6% at the producer level.
September rate cut is not just unlikely now. It is almost impossible to justify with this data.
Rest. #DYOR
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