Germany's inflation drops to 6.1% in Aug from 6.2% in July while Core inflation stagnates at 5.5%
BUT 6.1% headline reading was 10 basis points above market predictions as energy prices accelerated to 8.3% in Aug from 5.7% in Jul. Food price inflation slowed to 9% in Aug from 11% in July. Source: HolgerZ, Bloomberg
EGGFLATION... With the price of eggs up +13% yesterday and +33% for the month, consumers are shelling out more and more for groceries
Thank you Hedgeye for the great cartoon Source: WallStreetSilver, WSJ
German wages rose at a record annual pace of 6.6 per cent in the second quarter, boosting consumer spending power but fuelling concerns about inflation being pushed up by rising labour costs
The increase, which compared with wage growth of 5.6 per cent in the previous quarter, was the highest since collection of the data began in 2008. It took German annual wage growth above the country’s consumer price inflation rate — 6.5 per cent in the period — for the first time since 2021. Source: FT
Wage inflation: UPS workers approve massive new labor deal with big raises. The deal passed with 86.3% of votes, the highest contract vote in the history of Teamsters at UPS, according to the union
Under the new agreement: 1. Part time workers will make no less than $21/hour, up from a minimum of $15.50 currently, 2. Full time workers will average $49/hour. Current workers will get $2.75 more an hour this year and $7.50 an hour more over the five-year contract. 3. UPS drivers will average $170,000/year 4. Contract impacts ~340,000 workers 5. The company cut its full-year revenue and margin forecasts, citing the “volume impact from labor negotiations and the costs associated with the tentative agreement.” UPS has put $30 billion aside for this new contract
Treasury 10-Year real yield tops 2% for first time since 2009
The yield on 10-year inflation-protected Treasuries extended its ascent from year-to-date lows near 1%.
Rising real yields reflect firmer economy and higher deficit.
Source: Bloomberg
"inflation is always and everywhere a monetary phenomenon." - Milton Friedman
Source: Charlie Bilello
Unprecedented times in Argentina
- On Monday, Argentina’s central bank raised interest rates to 118%. - Forex: you now get a record 350 Argentine Pesos for each US Dollar. - Argentina 30-year mortgage is now at a record 82.2%. - For the first time since 1991, their inflation rate is above 100%. Source: The Kobeissi Letter
Soccerflation...Perks that Neymar Júnior will receive in Saudi Arabia:
• €100M-a-year salary • House with 25 bedrooms • 40x10 meter swimming pool and 3 saunas • 5 full-time staff for his house • Bentley Continental GT • Aston Martin DBX • Lamborghini Huracán • 24-hour driver • all bills for hotels, restaurants and various services during his OFF days will be sent to the club headquarters to be paid • Private plane at his disposal for his travels • €500,000 for each social media post that promotes Saudi Arabia Source: The world of Statistics
