CNBC’s Santelli: Producer Price Index Fell 0.4% in March, the Sharpest Drop Since October 2023

SORKIN We re just ░░░░░░░░ away right now from ░░░░░░░░ PPI data I want ░░░░░░░░ get straight over to ░░░░░░░░ Santelli He is standing ░░░░░░░░ at the CME in ░░░░░░░░ Rickster the numbers SANTELLI ░░░░░░░░ these are our March ░░░░░░░░ on Producer Price Index ░░░░░░░░ more wholesale side of ░░░░░░░░ inflation equation and they ░░░░░░░░ big numbers Down 4 ░░░░░░░░ on headline down 4 ░░░░░░░░ That would be equal ░░░░░░░░ where we were in ░░░░░░░░ of 23 And if ░░░░░░░░ find a lower number ░░░░░░░░ re going all the ░░░░░░░░ back to April of ░░░░░░░░ in the Covid affected ░░░░░░░░ and that was down ░░░░░░░░ 2 Now let s ░░░░░░░░ out food and energy ░░░░░░░░ 1 10 of a ░░░░░░░░ That equals where we ░░░░░░░░ in February equals where ░░░░░░░░ were in July To ░░░░░░░░ a lower number you ░░░░░░░░ in April of 2020 ░░░░░░░░ minus 3 10 If ░░░░░░░░ look at ex food ░░░░░░░░ and trade it is ░░░░░░░░ 1 10 also much ░░░░░░░░ than we were expecting ░░░░░░░░ 1010 equals where we ░░░░░░░░ in November of last ░░░░░░░░ To find a bigger ░░░░░░░░ negative number you re ░░░░░░░░ 8 10 in April ░░░░░░░░ 2020 Now let s ░░░░░░░░ at year over year ░░░░░░░░ demand 2 7 well ░░░░░░░░ our expectations of 3 ░░░░░░░░ well below 3 2 ░░░░░░░░ the rear view mirror ░░░░░░░░ find a lower number ░░░░░░░░ re in September of ░░░░░░░░ year September of last ░░░░░░░░ So we see that ░░░░░░░░ metric had been moving ░░░░░░░░ Now it s moving ░░░░░░░░ down If we look ░░░░░░░░ ex food and energy ░░░░░░░░ a year over year ░░░░░░░░ 3 3 less than ░░░░░░░░ 4 in the rear ░░░░░░░░ mirror less than 3 ░░░░░░░░ expected That equals September ░░░░░░░░ last year To find ░░░░░░░░ lower number you re ░░░░░░░░ August of last year ░░░░░░░░ 2 8 And drum ░░░░░░░░ please the last metric ░░░░░░░░ this PPI data series ░░░░░░░░ over year ex food ░░░░░░░░ energy ex trade 3 ░░░░░░░░ the only metric higher ░░░░░░░░ we re expecting by ░░░░░░░░ 10 higher than the ░░░░░░░░ view mirror by 1 ░░░░░░░░ 3 4 equals where ░░░░░░░░ were in January To ░░░░░░░░ a higher number here ░░░░░░░░ Dec Of last year ░░░░░░░░ 3 5 Late revisions ░░░░░░░░ in on headline Last ░░░░░░░░ s zero on the ░░░░░░░░ demand headline now moves ░░░░░░░░ a positive 1 10 ░░░░░░░░ it s now minus ░░░░░░░░ 10 That means the ░░░░░░░░ change is a half ░░░░░░░░ percent lower And on ░░░░░░░░ ex food and energy ░░░░░░░░ over month minus 1 ░░░░░░░░ becomes positive 1 10 ░░░░░░░░ the net changes down ░░░░░░░░ 10 because the current ░░░░░░░░ is down 1 10 ░░░░░░░░ the biggest thing that ░░░░░░░░ jump out at anybody ░░░░░░░░ that last week the ░░░░░░░░ year note yield closed ░░░░░░░░ this at 366 It ░░░░░░░░ at 383 A 10 ░░░░░░░░ closed at 4 last ░░░░░░░░ Ut s at 442 ░░░░░░░░ 42 basis points Think ░░░░░░░░ the ramifications We re ░░░░░░░░ 60 on the 210 ░░░░░░░░ Now everybody s hair ░░░░░░░░ on fire for all ░░░░░░░░ uncertainty I understand it ░░░░░░░░ all the guests say ░░░░░░░░ is the biggest move ░░░░░░░░ ve ever seen in ░░░░░░░░ and whatever Well that ░░░░░░░░ because we had thin ░░░░░░░░ and very thin hours ░░░░░░░░ we had extremes Then ░░░░░░░░ market comes into our ░░░░░░░░ time zone you populate ░░░░░░░░ with much more trading ░░░░░░░░ s the only thing ░░░░░░░░ I look at I ░░░░░░░░ to keep it simple ░░░░░░░░ and let s keep ░░░░░░░░ emotions down The high ░░░░░░░░ close for the year ░░░░░░░░ 2s okay that was ░░░░░░░░ 438 on the 13th ░░░░░░░░ January So that we ░░░░░░░░ see has a flight ░░░░░░░░ quality flight to safety ░░░░░░░░ built in maybe a ░░░░░░░░ component built in Now ░░░░░░░░ s go up the ░░░░░░░░ On the 14th of ░░░░░░░░ a 10 year closed ░░░░░░░░ 479 A 30 year ░░░░░░░░ at 498 Those closing ░░░░░░░░ are above where we ░░░░░░░░ at now So if ░░░░░░░░ world is so bad ░░░░░░░░ treasuries are expressing everything ░░░░░░░░ on fire why can ░░░░░░░░ we get a higher ░░░░░░░░ close on the year ░░░░░░░░ where we were in ░░░░░░░░ Those are numbers we ░░░░░░░░ pay attention to Back ░░░░░░░░ you.”