Key inflation indicator up

[tsptalk]

Key inflation indicator up 3.5% [but below 3.6% estimate] year over year in June for fastest gain since 1991 -

KEY POINTS

An inflation gauge followed closely by the Federal Reserve increased 3.5% year over year in June, slightly below the 3.6% estimate.

Consumer spending rose 1%, faster than expected as personal income also increased.

Labor costs rose as well, with compensation rising 2.9% from a year earlier.

https://www.cnbc.com/2021/07/30/key...-year-in-june-vs-3point6percent-estimate.html

 

[Bullitt]

From DJ Newswire:

1206 ET - Chevron is not seeing substantial impacts from inflation on its supply chain. CFO Pierre Breber said there had been some cost increases in steel supply and trucking services, but said inflation had been limited outside those areas. "I think there's more talk about it than we're seeing in action," Breber said on a call with analysts.

 

[Bullitt]

Campbells foods tried using the inflation excuse for their poor earnings. It's been a coin flip whether it comes up or not this quarter. A few companies that didn't do so well have claimed it's because of inflation. Chevron seems to be shrugging it off as a supply chain issue.

CVX Transcript:

Biraj Borkhataria with Royal Bank of Canada

2nd question is actually just a more general question on inflation. Would you be able to talk about across services in raw materials and whatnot and what you are seeing -- any worrying signs of inflation across the portfolio?

Pierre Breber

We are not. We've talked in the past about isolated areas. I mean, for example, steel costs that go into our tubulars and our wells is up, but it's a fairly -- is a small component of a well cost, maybe about 10%. We certainly are seeing tightness in trucking services that has impacted us at time and some wage labor cost increases there, but I think there is more talk about it than we're seeing in terms of action.