PPI data, initial alarm but then revisions were seen

PPI was about as expected when we include the downward revisions to March. So, the headline print of .5% m/o/m follows a one tenth drop in March. The same was seen with the core rate. The market first responded to the April data with a selloff but then recalibrated when the revisions were seen.

Versus last year, headline PPI was higher by 2.2% and by 2.4% ex food and energy. Food prices fell .7% m/o/m but up .5% y/o/y. Energy prices were up by 2% m/o/m, driven by gasoline prices and 1% y/o/y. Core goods prices rose .3% m/o/m and by 1.6% y/o/y and I believe are bottoming out. The BLS said the core goods price rise was driven by nonferrous metals and electric power.