Squawk on the Street SOTS 2nd Hour: Another Hot Inflation Print, Healthcare's FDA Question, & U.S.-China Summit Latest 5/13/26
May 13, 2026
Eamon Javers, CNBC correspondent reporting from Beijing, offers on-the-ground coverage of President Trump’s delegation and summit developments. He discusses Jensen Huang joining the trip and logistics of CEO participation. He outlines possible U.S.-China trade deliverables and talks about summit expectations and limits in short, focused updates.
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Hot PPI Shows Inflation Broadening
- Producer price inflation (PPI) surged the most since Dec 2022, with core month-over-month PPI ~1% versus 0.3% consensus indicating broadening wholesale pressure.
- Sara Eisen highlighted oil-driven costs bleeding into services like transportation and shelter spikes, signaling risks beyond a simple one-off energy move.
Fed Comfort Hinges On Inflation Expectations
- Krishna Guha sees inflation risks but notes five-year forward breakevens remain anchored, so Fed alarm not immediate.
- He estimates Q4 core PCE near 2.9–3.0% with ~70 bps from transitory sources like tariffs, oil pass-through, and AI CapEx spillovers.
AI CapEx Could Shift Inflation Composition
- Inflation drivers split between disinflationary labor (high productivity, moderate wages) and inflationary non-labor CapEx spillovers from AI, memory chips, commodities.
- Guha warns labor typically dominates, but AI-driven input-price pressures and supply constraints could tilt risks upward.