A spike in producer prices introduced a “note of unease” into the Federal Reserve’s outlook, according to Chicago Fed President Austan Goolsbee.
The inflation surprise was concentrated in areas unlikely to be affected by tariffs.
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“The first two of the four inflation reports came in quite mild, and we were feeling good,” Goolsbee said Friday in an interview with CNBC.
But the last CPI and now this PPI — with inflation kicking up in categories that are not obviously going to be transitory — represented an “area of concern,” according to Goolsbee.
“I feel like we still need another [good] one, at least to figure out if we’re still on the golden path,” he added.
How July’s CPI And PPI Numbers Stacked Up
Headline CPI rose 0.2% month over month in July, in line with expectations and down from 0.3% in June. The year-over-year CPI held steady at 2.7%, just shy of the 2.8% forecast.
But core CPI …