US June PPI +2.6% vs +2.3% expected

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• Highest
  since
  March
  2023
• 
  Prior
  was
  +2.2%
  y/y
• PPI
  final
  demand
  +0.2%
  m/m
  vs
  +0.1%
  expected
• Prior
  was
  -0.2%
  (revised
  to
  0.0%)
• PPI
  ex
  food/energy
  +3.0%
  vs
  +2.5%
  y/y
  expected
• Prior
  ex
  food/energy
  revised
  to
  2.6%
  from
  2.3%
• PPI
  ex
  food/energy
  +0.4%
  vs
  +0.2%
  m/m
  expected
• Prior
  ex
  food/energy
  +0.0%
  (revised
  to
  +0.3%)
• 
  Full
  release

Well
this
is
a
curveball.
Had
it
come
before
CPI,
this
would
have
led
to
some
real
angst
but
now
the
market
is
left
scratching
its
head
about
where
inflation
is
landing.
There
is
some
pipeline
pressure
here
but
in
the
CPI
numbers,
we
should
get
a
year
of
housing
disinflation.
What’s
the
signal
and
what’s
the
noise?

Note
that
the
prior
numbers
were
also
revised
notably
higher.

There
is
also
this:

"The June rise in the index for final demand can be traced to a 0.6-percent increase in prices for  final demand services. In contrast, the index for final demand goods decreased 0.5 percent.

For
now,
Fed
funds
pricing
ticked
1
bps
lower
to
60
bps.
The
dollar
initially
rallied
but
has
given
most
of
it
back.”

Does
that
sound
like
some
kind
of
one-off
quirk?