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July final demand PPI soft, -0.1% vs +0.2%..>

US DATA
US DATA: July final demand PPI soft, -0.1% vs +0.2% reading expected, 
while ex. food, energy -0.1% vs +0.2% expected and PPI ex. food, energy, 
trade services flat. PPI ex. only trade services flat. BLS analyst Scott 
Sager said the weakness in the report was "broad-based", with both goods 
and services contributing to the overall decline. Energy prices -0.3%, 
with gasoline prices -1.4%, and food prices flat, while trade services 
prices -0.5% on declines in margins for chemicals and machinery, as well 
as a 3.4% decline in margins on gasoline. The 12-month changes suggest 
softness as well, as headline PPI +1.9% y/y vs +2.0% in June, while PPI 
ex. food and energy +1.8% y/y after +1.9% in June and ex. food, energy, 
and trade services +1.9% y/y vs +2.0% in June. Overall, the data points 
to weak wholesale inflation that should spill over into consumer prices 
on a monthly basis, and a pull back in y/y inflation that weigh into the 
FOMC's inflation discussion. See MNI main wire. 

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