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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
DATA REACT
Today's data showed a cycle low for weekly initial jobless claims at 293k, but a much weaker-than-expected M/M reading for core PPI (ex-food and energy) (+0.2% vs +0.5% expected, +0.6% prior).
- Notably dragging on core PPI was the 16.9% M/M drop in airline passenger services, vs increases of 9% in the previous 2 months. It's one of the few "minuses" in the September column for final demand prices, and a rough calculation suggests it pulled down the overall PPI reading by around 0.17pp singlehandedly (ie most of the miss in PPI core measures vs expectations).
- By comparison, airfares dropped 6.4% in the September CPI report, subtracting 0.04pp to the headline CPI figure (where it also has a lower weighting than it does in PPI, as well as a different data collection methodology).
- Otherwise, the PPI report looks fairly robust in terms of price pressures, so while the immediate market reaction to the miss has tilted dovish, it's premature to conclude that underlying inflation pressures are abating.
Source: BLS
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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