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PPI Inflation Distorted By Trade Service Revisions

US DATA
  • Ex food & energy: 0.31% M/M in July (cons 0.2) but after some sizeable two-way revisions, most recently following a downward revised -0.08% in June (initial +0.12) but before that a stronger profile with 0.20% instead of 0.14% in May and 0.19% instead of 0.06% in April.
  • Those revisions appear led by trade services though. Ex food, energy & trade services: 0.20% M/M in July (cons 0.2) after 0.13% (initial 0.10) plus some modest upward revisions.
  • See charts below.
  • Recall that CPI core goods ex used vehicles fell -0.18% M/M after two flat months, its first outright decline since Feb’21 as the significant moderation in supply chain pressures feeds through.

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