PPI: -4.6% YOY Through June, Core PPI +3.3% YOY. Inflation Fear Returns.

The US Producer Price Index, which measures inflation at the business and manufacturing levels of the economy, was +1.8% in June and -4.6% year-over-year through June. Excluding volatile oil and food costs from the readings, “Core” PPI for June was +0.5% and +3.3% YOY through June. You can also view and download historical PPI data by scrolling down to our Data section on the right side of the site.

Back in February, inflation wasn’t a concern and deflation was the primary worry. And in the last three months, it’s been a see-saw: Inflation fear in April, Inflation benign in May, and now inflation fear for June. On surface level, market sentiment seems to be that inflation shouldn’t be an issue for some time because aggregate demand is compromised by weakened consumers and businesses. But bond markets still sell off on a report like today’s, which shows that core YOY inflation is above the Fed’s comfort zone of 1-2%. Tomorrow, we’ll have the consumer inflation report.