Producer Prices ease
There was some further good news on the inflation front overnight, with US annual producer price inflation falling from an alarming 11.2 per cent a year ago, to just 0.1 per cent over the year to June 2023.
The declines have been seen very consistently over each of the past 12 months.
Producer prices for are goods are now outright declining.
Source: BLS
This is something to watch out for in Australia: falling goods prices ahead, but services prices may be stickier.
Import and exports prices have both declined significantly, while the consumer price and producer price indices are at their lowest levels since May and August 2020 respectively.
Surely the Fed's job is almost done now...
All change
In Australia, it was finally formally announced today that Reserve Bank Governor Lowe will be finishing up his stint as Governor of the bank, to be replaced by insider Michele Bullock.
Overall it is a seemingly solid and popular choice.
As it turned out, Lowe picked a rather interesting time to lead the ship, with the global economy effectively locked down, and then reopened...not a run of events that is easily dealt with by historical models.
Of course, apparently almost everyone on social media thought they'd have somehow done a better job, but that kind of goes with the territory for the role of Governor, I guess.
ANZ has amended its interest rates call to an extended pause to assess how all the monetary tightening delivered to date has slowed the economy, with the terminal case rate now having peaked in ANZ's best estimates.
The change of call was driven by the general improvement in the global inflation figures, rather than the personnel change at the RBA.
Source: ANZ
Separately NAB's CEO Ross McEwan made a desperate, coded plea to ease lending restrictions this week, especially for investors, to help solve the housing shortage.
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On the road
And now for something completely different...the legendary Rask Roadshow is fast approaching!
I will be appearing at Port Macquarie, Newcastle, Wangaratta, and of course Sydney...so get your tickets for your local show now by booking here.
Note Brisbane's venue size has had to be increased by 40, and I understand the Perth event is now sold out.
Book your tickets here (or click on the image below):
Hawaiian shirts and thongs at the ready...look forward to seeing you around the traps!
