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US Producer Prices (July 2025)

Most of the large upside surprise to core PPI in July was due to a head-scratching increase in margins for wholesalers and retailers. While the data still imply that the core PCE deflator rose by roughly double the target consistent rate, at 0.32% m/m, much of that was due to a jump in the portfolio management component, which reflects the earlier rebound in the stock market and won’t concern the FOMC.

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