After May’s MoM deflationary impulse (thanks to a plunge in energy costs), June was expected to see a modest 0.1% rise (and we have seen energy prices starting to rise again). Sure enough, headline PPI printed HOT at +0.2% MoM (and May was revised higher), pushing the YoY print up to 2.6% (well above the 2.3% expected)…
![](https://assets.zerohedge.com/s3fs-public/inline-images/bfmA6C5_0.jpg?itok=XBYjG3RS)
Source: Bloomberg
That is the highest PPI since March 2023.
Core PPI rose by 0.4% MoM (double the 0.2% exp), sending the YoY price rise up by 3.0% (also the hottest since March 2023)…
![](https://assets.zerohedge.com/s3fs-public/inline-images/bfm404D_0.jpg?itok=rsopcVTM)
Source: Bloomberg
The jump in PPI was driven by a resurgence in Services costs as Energy remains deflationary (for now)…
![](https://assets.zerohedge.com/s3fs-public/inline-images/image%20%2810%29_6.png?itok=McbVyOyy)
Source: Bloomberg
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
![](https://assets.zerohedge.com/s3fs-public/inline-images/image%20%289%29_9.png?itok=jjakQCY6)
Perhaps worse still, the pipeline for PPI (intermediate demand) is accelerating…
![](https://assets.zerohedge.com/s3fs-public/inline-images/bfm87FB.jpg?itok=rC5ycllI)
Source: Bloomberg
On the housing side, buying conditions for housing tanks to all-time low.
![](https://confoundedinterest.net/wp-content/uploads/2024/07/buyingcondhousung.jpg?w=1008)
![](https://confoundedinterest.net/wp-content/uploads/2024/07/gspu-ryxkair21t.jpg?w=776)