WTI OIL US OIL WTI CRUDE OILTVC:USOILShavyfxhubBureau of Labor Statistics today published CORE PPI DATA REPORT, the core ppi Measures the Change in the price of finished goods and services sold by producers, excluding food and energy;'Actual' greater than 'Forecast' is good for currency; FrequencyReleased monthly, about 13 days after the month ends and the Next Release will be Sep 10, 2025 the Producer Price Index (PPI) data for July 2025 came in much stronger than expected: The headline PPI increased by 0.9% month-over-month, compared to the forecast of just 0.2% and a flat 0.0% reading in June. This is the largest monthly gain since June 2022. Core PPI, which excludes food and energy prices, also surged by 0.9% month-over-month, well above the forecast of 0.2% and no change the prior month. On a year-over-year basis, the headline PPI rose 3.3%, up from 2.4% in June, while core PPI climbed to 3.7%, the highest core producer inflation level since March 2025. The price increases were broad-based, with significant rises in goods prices (especially food, steel, aluminum) and service prices (such as machinery wholesaling, hotels, freight). This sharp rise in producer inflation is partly attributed to the delayed effects of import tariffs, which producers have largely absorbed so far but are starting to pass through into prices. The strong PPI figures have raised concerns about increasing inflationary pressures, making near-term Federal Reserve interest rate cuts less likely. Markets have adjusted expectations, with the probability of a September rate cut slightly declining. Labor market data showed initial unemployment claims slightly better than expected at 224,000, indicating continuing labor market strength alongside rising inflation. In summary, this unexpected surge in wholesale inflation signals growing inflation pressures that could complicate the Federal Reserve's policy decisions moving forward. It suggests inflation at the producer level is escalating after a period of moderation, challenging hopes for near-term rate relief. At 3:10pm, St. Louis Federal Reserve President and FOMC member Alberto Musalem spoke about U.S. economic conditions and monetary policy. Key points from his statements include: Tariffs are feeding through into inflation, which is running close to 3%. Most of the tariff impact on inflation is expected to fade within 6 to 9 months, but there is a chance the impact could be more persistent. The U.S. economy is around full employment, though there are some early signs of weakening in the labor market. Musalem favors a meeting-by-meeting approach for monetary policy decisions, emphasizing the need for an open mind as new data arrive. He revised his view slightly with labor market risks seen as somewhat higher and inflation risks somewhat lower. Economic growth is slightly below 1%, creating downside risks for the job market. So far, businesses are not indicating imminent layoffs. Musalem stressed the Fed's role to listen to businesses and main street rather than political views on monetary policy. He suggested a patient approach is best, with further rate adjustments dependent on inflation and labor market developments, keeping an eye on whether inflation becomes more persistent or the labor market weakens. U.S. natural gas storage reported 56 billion cubic feet available, higher than the previous 53 billion, indicating ample supply. U.S. mortgage delinquencies improved slightly to 3.93% from 4.04%, showing some easing in mortgage stress. #OIL