Great News for Fans of Inflation.

Initial Jobless Claims (week ended 7/9/2016)

– Initial Claims seasonally adjusted 254,000. Previous was 254,000
– Initial Claims unadjusted, totaled 298,862 an increase of 31,425 previous
– 4-week moving average 259,000. Previous was 264,750.

Initial Jobless Claims have remained low even as the Fed’s Labor Market Conditions Index has been negative since January.

 

PPI-FD (June 2016)

– PPI-FD month/month +0.5%. Previous was +0.4%
– PPI-FD year/year +0.3%. Previous was -0.1%
– PPI-FD core (less food & energy month/month) +0.4%. Previous was +0.3%
– PPI-FD core (less food & energy year/year) +1.3%. Previous was +1.2%
– PPI-FD core (less food, energy & trade services) month/month +0.3%. Previous was -0.1%
– PPI-FD core (less food, energy & trade services) year/year +0.9%. Previous was +0.8%.

This is inflation on the wholesale level which does not always pass through to the retail level. Since the Fed has tried to convince everyone that inflation was too low this must be great
news.