Inflation just came in hotter than expected.
April PPI jumped to 6.0%, well above the 4.9% forecast, hitting the highest level since January 2023.Core PPI rose to 5.2%, beating expectations of 4.3%.Now both CPI and PPI are officially sitting at their highest levels in more than 3 years.
Why it matters:
If producers are paying more, those costs can eventually hit consumers. That keeps inflation sticky and makes the Fed’s job much harder.
Rate cuts? Less likely.
Rate hike odds? Rising.