‘Boy, I’m Surprised!’: CNBC’s Rick Santelli Blown Away By ‘Progress’ In New Inflation Report Under Trump

CNBC editor Rick Santelli expressed shock on Wednesday about wholesale prices in the U.S. unexpectedly declining.

The Producer Price Index (PPI) showed that the prices paid to producers fell 0.1% in August while slowing to an annual rate of 2.6%, according to the Bureau of Labor Statistics (BLS). Santelli said on “Squawk Box” that it was the first negative reading since April and that the report indicated “real progress.”

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“PPI, wholesale inflation for August, expected to be up 0.3%. No, no, no. Down 0.1% … Wow. That would be the first negative number since April of this year when it was -0.2%. Strip out food and energy,” Santelli said. “We were also expecting up 0.3. It’s -0.1% as well … last time we had a minus number was April and we’re comping to -0.2% in April … last month we had up 0.9% on both those variables. They were the highest going back to March of 2022. They just were revised slightly lower to 0.7% for each of those in the rearview mirror for July.”

“et’s look at ex food, energy and trade. Finally, as expected, up 0.3%, which follows up 0.6%, unrevised at this point. Up 0.3% would actually be the smallest going back to 0 in June of this year. Now, the year-over-year, in my opinion, these are the most important,” he added. “And boy, I’m surprised! Real progress here! 2.6% on year-over-year headline! We were expecting 3.3% in the rearview mirror. 2.6% would be the lowest since it was 2.4% in June and it underscores whether it was tariff driven or not. Those little blips seem to be moving back into the sunset.”

Santelli also noted the price of goods — excluding energy and food — were unexpectedly lower at 2.8%.

“2.8% would equate to the smallest since June of this year, but that was the smallest going all the way back to April of 24′,” he said.