Free Trial

Late Equity Roundup: Forging Lower


SOFR/Treasury Option Roundup


Slump In Sentiment Bolsters Greenback Recovery


Sights Are On Key Resistance

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access
--August PPI Ex. Food, Energy, Trade +0.1%; Trade Services -0.9%
--PPI +2.8% Y/Y Vs +3.3% In July; Ex Food, Energy +2.3% Vs +2.7%
By Kevin Kastner, Harrison Clarke, and Shikha Dave
     WASHINGTON (MNI) - Final demand PPI was down 0.1% in August, well 
below the 0.2% gain expected and the first decline in the headline 
reading since February 2017, data released by the Bureau of Labor 
Statistics Wednesday showed. 
     There was also a surprise 0.1% decline outside of food and energy 
prices, in contrast to an expected increase of 0.2%. 
     The year/year rates of inflation for these categories slowed 
dramatically from July, but the year/year rate for prices also excluding 
the volatile trade services category rose further. As a result, this 
data should not be a deterrent to the FOMC's consideration of another 
rate hike at the end of September. 
     The personal consumption price measure in the data, which some 
analysts use as a preview measure for the CPI and PCE price indexes, was 
flat overall and ex. food and energy, but was up 0.3% also excluding 
trade services, suggesting a softer picture for the PCE inflation data. 
     Energy prices rose 0.4% in August after a 0.5% decline in July, led 
in August by a large 1.8% gain in residential natural gas. Electric power 
prices rose by 0.6% and gasoline prices were up 0.6%, but home heating 
oil prices fell 0.9%. 
     Food prices were down 0.6%, with large declines seen in eggs and 
fresh fruits. 
     Trade services prices fell 0.9% in the month after a 0.8% drop in 
July, while the PPI core rate the BLS prefers, which excludes the change 
in trade services as well as food and energy, rose 0.1% in August. 
     Within the core, there were generally mixed movements in a number 
of categories. Passenger car prices rose 0.7%, while light truck prices 
fell 0.1%. However, overall final demand services prices were down 0.1%. 
     The year/year rates for these measures decelerated in the month. 
Overall PPI was up 2.8% year/year in August after a 3.3% year/year rise 
in July. 
     At the same time, the year/year rate for PPI excluding food and 
energy slowed to 2.3% from 2.7% in July, but the year/year rate for PPI 
excluding food, energy and trade services rose to 2.9% from 2.8%. 
     ** MNI Washington Bureau: 202-371-2121 **
[TOPICS: MAUDS$,M$U$$$,MT$$$$] 

To read the full story

Why Subscribe to

MNI is the leading provider

of news and intelligence specifically for the Global Foreign Exchange and Fixed Income Markets, providing timely, relevant, and critical insight for market professionals and those who want to make informed investment decisions. We offer not simply news, but news analysis, linking breaking news to the effects on capital markets. Our exclusive information and intelligence moves markets.

Our credibility

for delivering mission-critical information has been built over three decades. The quality and experience of MNI's team of analysts and reporters across America, Asia and Europe truly sets us apart. Our Markets team includes former fixed-income specialists, currency traders, economists and strategists, who are able to combine expertise on macro economics, financial markets, and political risk to give a comprehensive and holistic insight on global markets.