Getty Images By Jennifer Nash May's Producer Price Index (PPI) data delivered another blow to inflation watchers, as wholesale price growth came in hotter than expected. Final demand surged by 1.1% for the month, well above the anticipated 0.7% jump and marking the largest monthly increase since March 2022. On an annual basis, headline PPI accelerated from 5.7% in April to 6.5%, its highest level ...
Getty Images By Jennifer Nash May's Producer Price Index (PPI) data delivered another blow to inflation watchers, as wholesale price growth came in hotter than expected. Final demand surged by 1.1% for the month, well above the anticipated 0.7% jump and marking the largest monthly increase since March 2022. On an annual basis, headline PPI accelerated from 5.7% in April to 6.5%, its highest level since November 2022 and just above the 6.4% forecast. Core PPI, which strips out volatile food and energy costs, unexpectedly came in lower than projected. It rose 0.4% for the month, just below the 0.5% forecast. On an annual basis, the core rate remained at 4.9%, notably lower than the 5.4% forecast. Producer Price Index: Finished Goods The BLS shifted its focus to the "final demand" PPI series in 2014, but data for these series extend only back to November 2009 for headline PPI and April 2010 for core PPI. Since our analysis emphasizes longer-term trends, we continue to track the legacy PPI for finished goods, which the BLS still includes in its monthly updates. As a later overlay chart will illustrate, the final demand and finished goods indexes remain highly correlated. In May, the PPI for finished goods was up 2.6% month-over-month, up from 1.6% in April and the largest monthly growth since June 2022. Year-over-year, headline PPI for finished goods accelerated from 6.4% to 8.8%, the highest level since November 2022. Meanwhile, core PPI for finished goods was up 0.3% on the month, down from 0.4% in April. On an annual basis, core PPI for finished goods was unchanged at 3.7%. Producer Price Index (PPI) vs. Consumer Price Index (CPI) Both PPI and CPI illustrate monthly price changes. However, as their names suggest, the Producer Price Index measures price changes from the producer perspective, whereas the Consumer Price Index measures price changes from the consumer perspective. PPI is thought to be a leading indicator of consumer inflation because, for the most part, w...
Corn futures closed Thursday with losses of 7 to 10 ½ cents across most contracts, as increased supplies on USDA’s balance sheets added pressure. The CmdtyView national average Cash Corn price was down 6 3/4 cents at $3.80 1/2. Export Sales data from this morning indicated 1.00 MMT of old...
Corn futures closed Thursday with losses of 7 to 10 ½ cents across most contracts, as increased supplies on USDA’s balance sheets added pressure. The CmdtyView national average Cash Corn price was down 6 3/4 cents at $3.80 1/2. Export Sales data from this morning indicated 1.00 MMT of old...
Cotton futures posted gains of 13 to 139 points across the board on Thursday, led by the front months. Crude oil was down $3.61 to $86.42/barrel after President Trump announced late in the day that there was a deal between the US and Iran. The US dollar index was down...
Cotton futures posted gains of 13 to 139 points across the board on Thursday, led by the front months. Crude oil was down $3.61 to $86.42/barrel after President Trump announced late in the day that there was a deal between the US and Iran. The US dollar index was down...
Woodside Energy Group Ltd. has blocked the sale of a stake in the Browse liquefied natural gas project in Western Australia to Inpex Corp. , eliminating the risk the Japanese company will push to route fuel to its own LNG plant. Woodside will exercise preemptive rights to buy PetroChina Co. ’s 10.67% participating interest in the venture on the same terms as the original agreement with Inpex, the ...
Woodside Energy Group Ltd. has blocked the sale of a stake in the Browse liquefied natural gas project in Western Australia to Inpex Corp. , eliminating the risk the Japanese company will push to route fuel to its own LNG plant. Woodside will exercise preemptive rights to buy PetroChina Co. ’s 10.67% participating interest in the venture on the same terms as the original agreement with Inpex, the Perth-based company said in a statement Friday. That includes paying $225 million plus reimbursements for PetroChina’s joint venture costs between June 30 last year and the completion date, as well as $175 million if a final investment decision is made on three fields before June 2032. Woodside’s growth in Australia hinges on the A$48.7 billion ($34.3 billion) project, the nation’s largest undeveloped gas resource. The deal removes the threat that Inpex would seek to route gas from Browse to its Ichthys LNG plant, rather than the Woodside-operated North West Shelf project, and sharpens Woodside’s incentive to see Browse through to a final investment decision. Browse is one of the biggest energy projects in Australian history, but has faced criticism for its plan to drill near the ecologically sensitive Scott Reef in the Indian Ocean and hasn’t yet received environmental approval. The move comes as Asian LNG importers are diversifying supplies away from the Middle East, as the effective closure of the Strait of Hormuz chokes a fifth of global exports. “Browse to the North West Shelf remains an important growth option for Woodside,” Woodside Chief Executive Officer Liz Westcott said. Woodside’s interest in Browse will rise to 41.27%, assuming no other joint venture partner exercises its preemptive rights. BP Plc earlier this month agreed to dilute its stake to 39.33% after selling 5% to South Korea’s GS Energy Corp. The remainder is held by a venture between Mitsui & Co. and Mitsubishi Corp.