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Medical Prices Key To Soft Core PCE-Related Categories (2/2)


We already know that methodological differences (housing especially) almost certainly meant a lower core PCE rate than the CPI equivalent of 0.31% M/M, and today's PPI figures should reinforce the downside.

  • Airline passenger services came in at +2.11% M/M (-0.59% prior).
  • But health/medical insurance PPI slowed to +0.15% (+0.18% prior), with health care services remaining subdued at +0.02% (-0.04% prior). That kept the negative gap with CPI counterparts quite wide (CPI professional care/hospital was +0.4% on the month).
  • Overall insurance PPI came in flat 0.00% (+0.09% prior), with private passenger auto insurance slowing.
  • Portfolio management prices were weaker than some estimates we'd seen, at +1.51% (-1.74% prior), considering that this category is imputed from asset price performance in a month which saw a significant share price rally.

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