Wall Street Breakfast Wholesale inflation soars
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Aug 14, 2025 Wholesale inflation has surged, marking the largest monthly increase in three years, causing ripples in the market. Tapestry faces challenges from tariffs, raising questions about pricing strategies. Concerns are also swirling around Meta's AI bots and their ethical implications. Meanwhile, Ethereum's value is predicted to skyrocket, possibly reaching $15,000 by year-end, presenting exciting investment prospects in the blockchain arena.
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Wholesale Inflation Surges
- July PPI rose 0.9% month-over-month, the biggest monthly rise in three years and far above expectations.
- Core PPI also jumped 0.9% and elevated annual core PPI suggests inflationary pressure up the pipeline to consumers.
Margins Signal Consumer Price Risk
- Economist Joseph Brusuelas warns that corporate margins will thin, enabling firms to pass costs downstream to households.
- That margin squeeze and tariff-driven cost pressures raise the risk of higher consumer inflation soon.
Services And Trade Margins Drove PPI
- Much of July's PPI rise came from final demand services and trade services margins, which surged notably.
- Machinery and equipment wholesaling margins jumped 3.8%, pointing to sector-specific pass-through and tariff impacts.