CPI and PPI Inflation: A Closer Look
The stock market opened slightly higher today, buoyed by another round of encouraging inflation data. US producer prices, often a precursor to where consumer prices might be heading, rose by just 0.1% month-over-month in July, a figure that came in lower than economist forecasts. Over the year, the Producer Price Index (PPI) increased by 2.2%, hovering near the Federal Reserve's (Fed) 2% inflation target. This PPI data was a prelude to the day's much-anticipated Consumer Price Index (CPI) report.
