PPI Inflation Could Hit Lowest Level Since September 2020, Reflecting Easing Inflationary Pressures
Portfolio Pulse from Piero Cingari
Economists predict a year-over-year increase of 0.4% for the U.S. producer price index (PPI) in June, down from 1.1% in May, marking the lowest level since September 2020. This is due to easing inflationary pressures, with consumer inflation in June decreasing to 3% year-on-year. The Bloomberg Commodity Index, tracked by the iShares Bloomberg Roll Select Commodity Strategy ETF (CMDY), rose 2.6% in June, while oil prices, tracked by the United States Oil Fund ETF (USO), increased by 3.7% in June 2023 but remained 33% below June 2022 levels.
July 12, 2023 | 4:10 pm
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The iShares Bloomberg Roll Select Commodity Strategy ETF (CMDY) rose 2.6% in June, reflecting the easing inflationary pressures.
The easing inflationary pressures have led to a rise in the Bloomberg Commodity Index, which is tracked by CMDY. This could potentially attract more investors, leading to a short-term increase in the ETF's price.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
The United States Oil Fund ETF (USO) increased by 3.7% in June 2023 but remained 33% below June 2022 levels.
Despite the increase in June 2023, USO remains significantly below its June 2022 levels. This suggests that while there may be a short-term increase in the ETF's price, it is still facing longer-term challenges.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80