Here is a quick summary of the PPI report released 8/11/22
- Reported: 9.8% Expected: 10.4%
- Prior month PPI was 11.3% which showcases that PPI inflation has peaked
- Highest PPI this year was 11.6% back in March 2022
- We came in lower than expected which is a positive notion for the stock market.
- What is PPI: The Producer Price Index (PPI) program measures the average change over time in the selling prices received by domestic producers for their output. The prices included in the PPI are from the first commercial transaction for many products and some services.
- Why is PPI useful for investors. PPI tracks inflations on the producer side, so if you see inflation hitting producers, you can assume consumers will later be hit with higher inflation as producers raise their prices to maintain profit margins and vise versa. By being able to forecast higher CPI you can then expect markets to drop as the Federal reserve will most likely raise interest rates to lower inflation.
Stay tuned into my morning live streams and turn your YouTube post notifications on! I will be posting more videos like this recapping and explaining how the current reports and upcoming reports will be affecting the market!