PPI rundown

July PPI rose one tenth headline and was flat ex food and energy. The headline was one tenth under the estimate while the core rate was two tenths below. If we also take out the trade stats, the rate was up .3% m/o/m, one tenth more than expected so we can isolate the miss relative to expectations to the trade side. On a y/o/y basis, headline PPI was up 2.2% vs 2.7% in June. The core rate is higher by 2.4% vs 3% and the core ex trade was up by 3.3% y/o/y vs 3.2% in the month before.

Core goods prices were higher by .2% m/o/m and 2.1% y/o/y. Energy prices rebounded led by gasoline after falling in the two prior months. Food prices were up by .6% m/o/m and 1.7% y/o/y.