Aug final demand PPI +0.2% vs +0.3% while...>

US DATA: Aug final demand PPI +0.2% vs +0.3% expected, while ex. 

food & energy +0.1% vs +0.2% expected and PPI ex. food, energy, trade 

services +0.2%. PPI ex. only trade services +0.3%. The data show 

continued soft inflation growth despite the rebound from July. Final 

demand goods +0.5%, but final demand services only +0.1%. BLS analyst 

Scott Sager told MNI that the key impacts to services were declines to 

hotel services (-2.8%) and securities/investment services (-3.0%). 

Energy prices +3.3%, though Sager said Hurricane Harvey happened too 

late in the month to be captured in the data. Gasoline prices +9.5%, and 

food prices -1.3%, while trade services prices flat as a small increase 

in finished goods was offset by a decline in trade of exports. The 

12-month changes suggest some acceleration, as headline PPI +2.4% y/y vs 

+1.9% in July, while PPI ex. food and energy +2.0% y/y after +1.8% in 

July, but ex. food, energy, and trade services unch at +1.9%. 

Overall, the data points to a modest rebound in wholesale inflation and 

a slight rise in core y/y inflation. See MNI main wire.