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PPI or Core PPI? This is so funny


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#1 nicolasillo

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Posted 18 September 2007 - 07:53 AM

All the previous months that core PPI was coming out in line and PPI was higher than expected the market didn t care because they were saying all that matters is the Core PPI. Today that core PPI (m/m) came out higher than expected but PPI much lower than expected (energy and food costs went down?? I wonder how did that happened) the market seems to care more about the PPI now. I wonder what happens tomorrow, with CPI and core CPI. I would love to see higher CPI and lower core CPI. I m sure the market will rally again That s so funny

Edited by nicolasillo, 18 September 2007 - 07:54 AM.


#2 relax

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Posted 18 September 2007 - 07:57 AM

see your point but with regards to core ppi/cpi a gain of .2 is good enough i have noticed sometimes expectations for core ppi are .1 but my experience is that there will be no real negative reaction if it is .2 or lower and to be honest interest rates have little impact on inflation inflation has hardly changed compared to when fed was raising rates - sure lagging effect, but IMO it also shows how inflation is really not in the hands of Fed Fed should focus on maintaining growth good luck with the trading

Edited by relax_dk, 18 September 2007 - 08:00 AM.


#3 nicolasillo

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Posted 18 September 2007 - 08:01 AM

see your point

but with regards to core ppi/cpi a gain of .2 is good enough

i have noticed sometimes expectations for core ppi are .1

but my experience is that there will be no real negative reaction if it is .2 or lower

and to be honest interest rates have little impact on inflation

inflation has hardly changed compared to when fed was raising rates - sure lagging effect, but IMO it also shows how inflation is really not in the hands of Fed

Fed should focus on maintaining growth

good luck with the trading


I am 100% with you on that interest rates have little impact on inflation!

#4 JAP

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Posted 18 September 2007 - 08:15 AM

How in the hell can they say the cost of energy and food has gone down? :huh: As usual... those numbers are bogus.

#5 nicolasillo

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Posted 18 September 2007 - 08:24 AM

How in the hell can they say the cost of energy and food has gone down? :huh:

As usual... those numbers are bogus.


gasoline prices were lower than previous month. Now food costs I don t know