Inflation may be poised to tick higher, according to the most recent Producer Price Index.
The PPI came in at 0.9 percent in July, where the markets were expecting a 0.2 percent increase. On the year, the Index rose 3.3 percent, and the markets were expecting a 2.5 percent climb.
Wholesale machinery costs made up around 30 percent of the rise in prices.
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The federal government’s status is far from the only factor moving the markets on Friday. Two critical reports released today on producer inflation and the status of the U.S. cattle herd are also top of mind.
Moderate oil prices may ease fuel costs, but continued caution in the energy sector could limit rural economic growth.
Firm live cow prices and shifting dairy-side culling suggest cull cow values may stay stronger than usual this winter despite weaker cow beef cutout trends.
Following an on-target CPI, the combination could suggest that inflation is cooling.
