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Three figures to start your day:
Core Consumer Price Index rose 0.6% in July
It is the fastest monthly increase since 1991.
The CPI follows a course of consumer goods and is a frequently cited measure of inflation in the US. The core CPI excludes liquid food and energy components, which can fluctuate from month to month.
On the one hand, the Covid-19 pandemic is a deflationary event. Job losses and disruptions to demand would lower prices. But on the other hand, fiscal and monetary policy in 2020 is decidedly inflationary.
Rock-bottom interest rates, quantitative easing, and trillions of dollars of federal spending are all trading to raise prices.
One month of rapid inflation makes no trend. But it’s worth it to look forward.
Boeing Delivers 4 Jets in July
It’s a painfully low number. Last July, Boeing delivered 19 jets. And two years ago, when the 737 MAX was still flying, Boeing delivered 39.
The steep drop underscores the unusual decline in demand in the aviation industry as a result of the pandemic. Even if companies fly again, passengers do not fly, leaving airlines with too many planes in their existing fleet. That they cancel orders for new jets.
Since the beginning of 2020, Boeing has received roughly 900 cancellations. It still has a large backlog, but a return to growth seems far away.
Oil runs after going negative in April
$ 42.67 was the recent price of a barrel of oil in the US It has been a wild spring and summer for oil prices, which went negative in April.
Demand has since improved as countries reopen their economies, although it still remains well below its pre-Covid levels. But supply has also dropped significantly.
While oil companies have reported second-quarter results in recent weeks, many management teams have noted that they are holding back on production or slowing down new developments. And on Wednesday, U.S. government data showed falling oil stocks.
That has helped increase oil prices over the past few months. But a complete recovery in the sector will require a major rebound in demand.
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Write to Nicholas Jasinski at [email protected]
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