U.S. PPI rises more than expected while core PPI lags, Gordon Johnson notes

U.S. PPI rises more than expected while core PPI lags, Gordon Johnson notes
U.S. PPI rises faster than forecast

Gordon Johnson, CEO / Analyst at GLJ Research, highlights a sharp rise in U.S. producer price index (PPI) figures. The headline PPI increased by 1.1% month over month, surpassing the expected 0.7%.

Year over year, PPI climbed 6.5%, above forecasts of 6.4%. Core PPI rose 0.4% month over month, just below the 0.5% estimate, and 4.9% year over year versus the expected 5.4%. Johnson describes the inflation data as "ugly" and signals the return of strong inflationary pressures.

Johnson previously warned that a planned $300 billion U.S. Treasury T-bill issuance through July could drain liquidity from U.S. markets and pressure bitcoin, according to a recent report. He has also analyzed how shifting liquidity from the Federal Reserve is reducing banks’ ability to invest in bitcoin, as detailed in another article. These recent comments come as investors evaluate the impact of rising inflation data.

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