US: Resilient Productivity and Contained Labor Costs Support Disinflation
Nonfarm business labor productivity (output per hour) rose 1.4% at an annualized rate in the second quarter of 2026 and 2.2% from the same quarter a year earlier (See Chart 2). The result combines a 1.7% increase in output with a mere 0.3% rise in hours worked.
US: Core PPI and Import Prices Reinforce Cost Pressures
Import prices fell 0.4% in July (after -0.3% in June) but are up 5.9% over 12 months. The monthly decline came from fuel (-7.2%, the largest since May 2025; +25.2% over 12 months); excluding fuel, import prices rose 0.4% on the month and are accelerating to 4.5% over 12 months, suggesting persistent pressure from tariff policy (See Chart 2).
US – CPI: Inflation Is Not Rising, but Remains High and Far from Target
The Consumer Price Index (CPI) rose 0.1% in July (seasonally adjusted), after falling 0.4% in June, and decelerated to 3.4% over 12 months (from 3.5%). The core index — which excludes food and energy — advanced 0.2% on the month and eased to 2.5% over 12 months, extending the disinflation trend (See Chart 1).
US: Productivity Reinforces the Profit Expansion Cycle
The productivity and labor cost indicators show a dynamic that is favorable for the Fed, in that
it is characterized by labor cost pressures that are virtually nonexistent from the standpoint
of firms.
Inflation Eases, but Risks Remain
https://pezco.com.br/wp-content/uploads/2026/07/260717-Reaction-CPI-eng.pdf
Brazil – Credit: Non Performing Loans Likely To Rise Further
https://pezco.com.br/wp-content/uploads/2026/06/260528-Credito-eng.pdf
Brazil – Credit: Government Concerned About Indebtedness… Of Others!
https://pezco.com.br/wp-content/uploads/2026/06/2604-Credito-Ing.pdf
US Jobs: The Weight of the Public Sector
https://pezco.com.br/wp-content/uploads/2026/07/260403-Payroll-ing.pdf