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What a mostly flat PPI can tell us about where the economy is

Oct 11, 2024
September's producer price index showed core inflation up slightly and producer prices down slightly. But there are still some interesting numbers in a "flat" index.
A dip in energy prices has brought down overall construction costs, says Ken Simonson, chief economist of the Associated General Contractors of America. But lumber and copper prices were up last month.
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Labor costs fell in July. That may be what the Fed's been looking for.

Aug 13, 2024
The decline helped bring the annual rate of inflation at the wholesale level down to 2.2%.
The decline in labor costs means a decline in jobs, or wages, or both. That's bad news for workers, but will it encourage the Federal Reserve to cut interest rates? Above, Fed Chair Jerome Powell.
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Why is the Fed still so cautious about interest rates?

Jun 13, 2024
Despite the CPI coming in unexpectedly low, the Federal Reserve needs more convincing that inflation is really getting better.
"Consumers change their buying habits, they move from steak to chicken, from the upper shelf down to the lower shelf," said Dan North with Allianz Trade about inflation.
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There are signs the economy may be improving

Oct 14, 2020
The modest increase in Producer Price Index numbers could be good inflation, considering.
Producer price hikes on items like chicken could raise the price you pay at the grocery store — but it could also not.
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Falling producer price index fans fears of deflation

May 13, 2020
Prices of many goods are dropping as demand slows and people stay at home more. But does this mean deflation is here to stay?
A warehouse in China. Producer prices have softened as economic activity has slowed.
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