PPI rundown

September PPI was flat at the headline level but up .2% m/o/m core. The headline print was one tenth under the estimate and the core rate was as expected. Due to rounding though, the gains exceeded expectations with a 1.8% y/o/y gain headline and 2.8% core vs 1.9% and 2.6% in the month before. If we take out trade too, prices here were up by 3.2% y/o/y vs 3.3% in the month before and up one tenth m/o/m. Energy prices fell while food prices rose, also seen within yesterday’s CPI.

Core goods prices rose .2% m/o/m and 2% y/o/y. Higher auto prices were a factor in the gain. On the downside, lower prices for plastic resins and materials fell.