PPI, Claims data/The ECB and Lagarde speaks

March PPI rose .2% headline and core with the former one tenth below expectations while the latter was as expected. Versus last year, wholesale prices grew by 2.1% headline and 2.4% core. Energy prices fell by 1.6% m/o/m and is down 1%, led by a drop in gasoline but I don’t see how that’s sustainable with the rise being seen. Food prices on the other hand jumped by .8% m/o/m after a 1.1% rise in February. They are up 1% y/o/y. Chicken prices in particular jumped by 10.7% and fresh and dry vegetable prices rose.  

Goods prices ex food and energy were higher by .1% m/o/m and 1.4% y/o/y with help from motor vehicles.

Service prices were up by .2% m/o/m and 2.4% y/o/y. Higher stock prices helped to drive that according to the BLS as prices for securities brokerage, dealing, investment and related services were up 3.1%. Prices rose too for professional and commercial equipment wholesaling, airline passenger services, computer/software retailing. They fell for auto retailing, hotels, and machinery and equipment. Seemingly not yet capturing the jump in air cargo prices, the BLS said ‘air transportation of freight’ prices fell .1% m/o/m and up just .4% y/o/y. Truck transportation prices were up by .4% m/o/m but down almost 4% y/o/y.