PREVIOUS TRADING DAY EVENTS 11 August 2023

According to the PPI data, U.S. producer prices increased slightly more than expected in July. The producer price index for final demand increased 0.3 last month. In the 12 months through July, the PPI increased 0.8 after gaining 0.2 in June, boosted by a lower base of comparison last year. The price increase serves as a signal that inflationary pressures are still in effect to some degree against the Federal Reserves rate hiking campaign.

According to previous CPI reports,  consumer prices rose moderately in July. Most economists expect the Federal Reserve to keep interest rates unchanged at its next months policy meeting.

The economy still faces some inflationary pressure from rapidly rising wages, but the cooldown of business input costs should help keep consumer prices on a downward trajectory in the fall, said Bill Adams, chief economist at Comerica Bank in Dallas.

The last two months of consumer goods price disinflation is on solid footing and more should be on the way, said Will Compernolle, macro strategist at FHN Financial in New York. This is the area of disinflation the Fed and market participants have been expecting for a while, mostly stemming from supply chain normalization.

The University of Michigans consumer sentiment survey on Friday showed a fall in expectations to 3.3 in August from 3.4 in July. They have been stable for three consecutive months.

The Feds 2 target is far from being reached and further…