Jan PPI +0.5%, Core Above Expected At +0.5%.>

US DATA: Jan PPI +0.5%, Core Above Expected At +0.5%

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- Jan headline PPI +0.5% vs +0.1% BBG; largest increase since Oct 2018 (+0.7%)

- Final demand PPI +2.1% y/y; largest increase since May (+2.1%)

- Core PPI +0.5% vs +0.1% BBG; +1.7% y/y (prev +1.1%)

- PPI ex. food, energy, trade +0.4% (+1.5% y/y); trade services +1.2% m/m 

- Energy prices -0.7% (gas -1.5%), food prices +0.2% 

- Final demand goods +0.1% m/m, +1.8% y/y

- Personal consumption prices +0.6%, ex. food and energy +0.7%

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Final demand PPI rose 0.5% in January, well above forecasts for 

a 0.1% gain. The January PPI data was largely driven by a 0.7% increase 

in prices for final demand services, the highest since October 2018. 

Prices for final demand trade services in particular grew by 1.2% in 

January, also the biggest increase since October 2018. Core PPI also 

increased 0.5% in January when markets has expected a 0.1% gain. Prices 

for final demand excluding foods, energy and trade services advanced 

0.4% in January, the largest increase since April.