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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
DATA REACT
Headline August PPI final demand M/M a touch stronger than expected (+0.7% vs +0.6% expected) but more or less in line.
- Despite an all-time Y/Y record (+8.3%), that was expected (+8.2%), so not a report that significantly changes the narrative of pipeline price pressures and unsurprisingly little reaction in Treasuries or USD.
A little color on goods and services drivers from the report:
- Final demand goods +1.0% M/M: "In August, half of the broad-based advance can be attributed to a 2.9-percent rise in prices for final demand foods...About a quarter of the August advance in prices for final demand goods can be attributed to an 8.5-percent rise in the index for meats."
- Final demand services +0.7% M/M: "Two-thirds of the broad-based increase in August can be traced to the index for final demand trade services, which rose 1.5 percent. (Trade indexes measure changes in margins received by wholesalers and retailers.)...Over 30 percent of the August increase in prices for final demand services can be traced to a 7.8-percent rise in margins for health, beauty, and optical goods retailing"
Source: Census Bureau, MNI
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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