Producer Price Index (PPI) Weaker than Expected, the Fed Will Be Pleased

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The PPI rose 0.1 percent in July vs. a 0.2 percent Bloomberg Econoday expectation. The way the PPI outperformed will please the Fed.

Data from the BLS, chart by Mish.

The PPI Report for July was a bit of pleasant news this morning.

PPI Key Points

  • The Producer Price Index for final demand increased 0.1 percent in July, seasonally adjusted. Final demand prices rose 0.2 percent in June and were unchanged in May.
  • The July rise in the index for final demand can be attributed to prices for final demand goods, which moved up 0.6 percent. The price of food also jumped 0.6 percent.
  • The index for final demand services fell 0.2 percent.
  • Prices for final demand less foods, energy, and trade services advanced 0.3 percent in July after increasing 0.1 percent in June.
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