Prices are falling: if the Bank of England continues with interest rate rises it can only be because they want to create a recession
Posted on July 7 2022IHS Markit, working with J P Morgan, has indicated this morning that:
Global cost pressures eased in June, according to S&P Global’s PMI business survey data, albeit remaining elevated. The survey gauge tracking changes in costs among both manufacturing and service sector companies worldwide fell from 71.5 in May, its highest since July 2008, to a four-month low of 69.3.
The PMI input cost series acts as a useful advance indicator of consumer price inflation, with changes in firms’ costs tending to feed through to CPI with a lag of one or more months.
I offer a word of warning: this is a US article, but it is also a global indicator.
The PMIs work on the basis that above 50 is expansion or rise, below 50 is contraction or fall. Therefore moving from 71.5 to 69.3 is not evidence that prices are falling – it is evident that they are continuing to rise but more slowly.#
Here, from the actual US PMI:
Meanwhile, input costs and output charges continued to
rise at substantial rates amid marked increases in supplier
prices. Alongside hikes in material costs, firms noted that
greater fuel and transportation charges pushed up operating
expenses. The rate of input cost inflation was the slowest
for three months, however. Output charge inflation also
moderated. That said, firms reiterated the need to pass
through higher costs to their clients through greater selling
prices.
Ignorant fucking twat.
Your succinct summary left out pompous! (I offer a word of warning…)
You should be kinder. The man’s clearly ill!
Also, isn’t this a small movement in an indicator for another measure? Can anyone really draw any conclusions from this change?
Was it Nixon who was referred to campaigning as on the third derivative of prices?
Yes: Bingo!
Once agin,
it spud: stupid