These New Numbers Could Be A Big Problem
Read summaryHave you ever wondered why the markets get jittery when economic indicators like the PPI and CPI are released? These indicators gauge how the economy is doing, like car gauges.
The PPI (Producer Price Index) tracks how much producers charge for their output, not consumer prices. In April, PPI increased 0.5% and was up 2.2% on a 12-month basis, higher than expected. Changes in PPI can indicate future changes in CPI (Consumer Price Index).
CPI increased 0.3% in April, below expectations, but market reacted positively. Retail sales report, another important indicator, shows sales from 13 major retailers.
Overall, recent economic indicators suggest moderate inflation and positive market reactions. Excitement may be overdone, but it's important to keep an eye on future reports 📈.
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