Shocker in PPI: 0.9% vs. 0.2% m/m consensus:
Figure 1: Top panel, Instantaneous inflation for core CPI (blue), core PCE deflator (green); Bottom panel, core PPI (tan). All per Eeckhout (2023), T=12, a=4. Source: BLS, BEA, via FRED, Goldman-Sachs and author’s calculations.
GS indicates 2.9% y/y based on PPI, CPI. Cleveland Fed is at 2.89% based on CPI.
