🚩 WHOLSELALE INFLATION SURGES: U.S. PPI DATA IS OUT!
This morning's PPI report is a massive "beat"—and not the good kind for those hoping for a pivot. With headline inflation hitting its highest level in a year, the "sticky inflation" narrative just got a lot more ammunition.
The Raw Numbers:
Headline PPI (YoY): 3.4% (Actual) vs 2.9% (Exp) | Prev: 2.9%
Core PPI (YoY): 3.9% (Actual) vs 3.7% (Exp) | Prev: 3.5%
PPI (MoM): 0.7% — more than double the 0.3% expected.
Why the Markets are Reacting:
The data shows that inflationary pressures are broadening. More than half of the February rise came from a 0.5% jump in services, while goods surged 1.1%, largely driven by energy and food costs.
$ROBO Key Takeaways:
Fed Policy Under Fire: CME FedWatch odds for a June rate cut have already slipped below 30%. With the Fed meeting concluding today, Jerome Powell is now walking into a press conference with data that suggests the "last mile" of inflation is becoming a marathon.
Energy & Conflict: Crude oil is trading well above $95/bbl amid the ongoing Strait of Hormuz blockade. This PPI print doesn't even fully capture the most recent spike in shipping and energy costs, suggesting next month could be even hotter.
$KITE Yield Curve Pressure: Bond yields are spiking as traders price in "higher for longer." The Nasdaq 100 (US100) futures immediately turned negative following the release as the tech sector feels the heat of rising discount rates.
$OPN This is a "canary in the coal mine" for the upcoming PCE data. If producers can't absorb these costs, they’ll be passed directly to the consumer.
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