Following A One Month Break, PPI Resumes Climb, Rises 0.2% From -0.4% Previously, Biggest One Month Surge Since January; Core Rises 0.4%,

Tyler Durden's picture

Following a big drop in June energy prices, which pushed the broader PPI to a one year low sequential change of -0.4%, the PPI is once again in an uptrend, rising by 0.2% in July, higher than consensus of 0.1%. Core PPI was higher by 0.4%, following the 0.3% increase in June, and double consensus of 0.2%. Energy did drop modestly in July by 0.6%, but far less than the June 2.8% drop, and was more than offset by the rise in food Producer Prices of 0.6%. In terms of various stages of production, finished core goods rose due to a 2.8% hike in tobacco products, with light motor trucks and pharmaceutical preparations also contributed significantly to the rise in the finished core index; finished foods rose primarily due to a 2.7% rise in veal prices, while energy prices dropped due a 2.8% decline in gasoline. In intermediate goods, core was led by higher prices for plastic resins and materials, which rose 2.1 percent, energy was led by liquefied petroleum gas led this advance, increasing 2.5 percent, and foods saw a 6.3% increase in natural, processed, and imitation cheese. Crude energy benefited from a 5.2% decline in crude petroleum, crude foodstuffs actually dropped 0.8% in July, led by a 9.7% decline in prices for slaughter poultry led the monthly decrease in July. Lower prices for fresh and dry vegetables also contributed to the decline in the crude foods index. As for crude core, the biggest upward price mover was a 7.0% increase in prices for copper ores was a major contributor to the monthly increase in July.

Source: BLS

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Racer's picture

"imitation cheese"????????????

And what on earth is that???

narapoiddyslexia's picture

Styrofoam, painted yellow. Or, maybe, a yellow iPad?

FEDbuster's picture

"A 2.7% rise in VEAL prices" , really???  The price of fucking veal can influence government statistics?  Didn't soy sauce price drops balance this out, WTF??  Has The Onion taken over the reporting of govt. stats?  If the price of veal is significant, then so is the price of 7.62 x 39.

jus_lite_reading's picture

Well its been confirmed that they make plastic RICE so plastic cheese seems truthful...

pazmaker's picture

vegatable oil made into a solid with nasty chemical flavorings

duo's picture

Remember, the only inflation that counts is wages and key food ingredients:


Textured vegetable protien (from GM soy)

MSG (makes imitation cheeze taste better)

Salt (ditto)

Partially hydrogenized soybean/corn oil

Instant Wealth's picture

Hell ! Why not make imitation cheese from imitation vegetable oil ?

RockyRacoon's picture

I'm working on marketing for instant water.   All suggestions are welcome.

John Law Lives's picture

Those styrofoam wedges you see mounted on the heads of fans of the Green Bay Packers.

HardwoodAg's picture

The stuff that Kraft uses in their Mac and Wheeze

RunningMan's picture

Inflation. And the government still spending money to prop up the things that aren't getting more expensive, apparently CHICKENS.

SheepDog-One's picture

Well, I can assure you chicken FEED is getting more expensive by almost 50% YOY and I have the receipts to prove it. Last July 50 lb of cracked corn cost $9, this July $15.

Caviar Emptor's picture

Hence the big reported rise in meats

HelluvaEngineer's picture

Yup.  Last year we gave the deer a tasty treat.  This year they are on their own.

Chump's picture

And next year if you aren't able to bag several you'll be facing starvation absent other supplies.  Progress.

glenlloyd's picture

And next year the deer will be your tasty treat.

firstdivision's picture

With a current PPI core rate at 5% annualized, will the Fed start tightening?

Caviar Emptor's picture

Biflation. Once again. 

eurusdog's picture

Futures are up 45 min before the open! I hated Crammer in the afternoon and now he pisses allover the morning news too!

FEDbuster's picture

CNBS has become unwatchable.  Mark Haines RIP.  Rick Santelli move to Bloomberg or Fox.

anynonmous's picture

"has become"

how about

has been always was

lizzy36's picture

He is an absolute horror.

Worst guy on CNBC and the benchmark for that particular prize is high. MCC's is a close second. Mostly want to punch her.


RockyRacoon's picture

Spot on, Liz.   She acts as if she were acting like she thinks a real hard-hitting news person would act.   I think I made the point that it's all an act -- and a bad caricature at that.   Still, she does have big...  never mind.

And that new guy, Brian, he's just Cramer-lite:  Rolled up sleeves, yelling louder than anyone else, shrill voice, talks gibberish.   Think they are grooming him for a replacement?

Caviar Emptor's picture

Food prices up 0.6%. 

maxmad's picture

Yep no doubt no QE3 (at least not for stawks) now fo' sure!

SheepDog-One's picture

The only one talking about QE is the dork from GS, and his case for QE is a measely $300 billion which has already been priced in many times over since promise of QE to offset all bad news since January and sub DOW 10,000. 

Im watching this clownshow from the sidelines.

Caviar Emptor's picture

In that case we got a whole lot of re-pricing to do 

Smiddywesson's picture

I am out of stocks too.  With the gold trade such a no brainer, why play in front of Ben's steamroller? (Unless one is a day trader, they must be very pleased with the Bernank).

RockyRacoon's picture trade...

Are you trading or buying?   They are night-n-day you know.   Thanks in advance for your clarification.

MoneyWise's picture

"2.8% hike in tobacco products"

I'm no smoker, but If I was one, I'd sue US.Gov for
violating human rights.. Common 15 years ago Pack of Marlboro
cost $0.99 at the gas station and now what? $15? in NY state?
Talking about GOLD? Tobacco is the GOLD nowadays, for those
.gov maniacs.
How they are always broke, no matter how much they collect
on tolls and cigarets? Always broke.

MachoMan's picture

Yet another similarity to prison...

boiltherich's picture

When I was in the service in 76 we bought Marb's for 11 cents a pack $1.10 a carton, now I pay $49.99 for an Apx. 5,000% increase.  Meanwhile my income in the same period has doubled. 

machineh's picture

PPI report -- Your zero-percent-till-2013 Federal Reserve inflato-dollars at work!

Perry is quite wrong about charging Bernanke with treason. The appropriate and provable charge is racketeering.

baby_BLYTHE's picture

Quite treasonist to bailout foreign banks to the tune of some 16 trillion dollars while average Amreicans were losing their jobs and being thrown out of their homes, IMO.

Caviar Emptor's picture

YoY: Core PPI up 2.5%. PPI overal up 7.2%. Nosebleed in a down economy. 

SheepDog-One's picture

And since the economy is confirmed totaly screwed by any measure, lets power up the robots and bid everything up more!

Hell robots got nothing else better to do, and who knows what kind of mischief they could get into if left idle.

Come on Ben, you can do it just 1 down day! Just for old times sake. What are you really scared of?

Caviar Emptor's picture

True, Sheep. The Bots don't need food. To them, everything is bullish. But without their QE3 wet dream, TPTB gonna throw a tantrum. 

SheepDog-One's picture

I look at all this, and keep concluding theyre just delaying, marking off time till some big event happens. None of this in itself is a plan, its just delay tactics.

Oh regional Indian's picture

Agree SD1, the players/enraged bull is/are ready to burst from behind the gates, mauling, goring....etc. Clearly this delay is to allow more pressure to build, or some crazy, esoteric alignment is being awaited. Whatever it is, it's going to be huge!


Smiddywesson's picture

That is my observation.  The only reason they would throw  around these sums in a hopeless cause is they are just buying time.

However, there is one thing they are doing that doesn't buy them time, so logically, it has to be part of their long term planning.

They are buying gold.  Gold is the answer, and anyone without it is betting on the old system, a system the insiders apparently don't have any faith in anymore.

Yardstick of Civilization's picture

Let's just hope the bots burst the price of food bubble soon.  I can hardly afford caviar, lamb chops, and lobster at the moment.

maxmad's picture

Tyler, can you plz make the comparison between Bernanke and KGB from the movie Rounders... I still think KGB was Bernanke

Caviar Emptor's picture

Tweet from Nouriel Roubini: 

Hyperinflation! So much for hysterical claims that Fed policy & QEs will cause massive inflation ": PPI up 0.2%, exp. 0.1%"

Tyler Durden's picture

And Zerohedge response:

Or claims that gold as an inflation hedge will tumble...

SheepDog-One's picture

Roubini's first blatant mistake is actually believing these less-than margin of error 'official Gubmint numbers'? 

Yea Roubini, we're all just 'hysterical' thats all. Lets see what your opinion would be if you were part of the 25% unemployed, and not some FED butt-boy as you now apparently are.