EmailEconomic
Last Update: 09-Aug-19 09:09 ET
PPI
Highlights
- The index for final demand increased 0.2% m/m in July (Briefing.com consensus +0.2%) while the index for final demand, excluding food and energy, decreased 0.1% m/m (Briefing.com consensus +0.2%).
- The m/m readings left the index for final demand up 1.7% yr/yr, unchanged from June. The index remains at its lowest level since January 2017. Core PPI was up 2.1% yr/yr, down from 2.3% in June.
Key Factors
- The index for final demand services decreased 0.1% in July after five consecutive monthly increases.
- Prices for final demand goods increased 0.4% in July, due to a 2.3% increase in the index for final demand energy.
- The index for processed goods for intermediate demand increased 0.2% in July.
- The index for unprocessed goods for intermediate demand increased 1.6% in July.
Big Picture
- The key takeaway from the report is that inflationary pressure remains muted.
| Category | JUL | JUN | MAY | APR | MAR |
|---|---|---|---|---|---|
| Final Demand | 0.2% | 0.1% | 0.1% | 0.2% | 0.6% |
| Core (excluding ...) | |||||
| Food and Energy | -0.1% | 0.3% | 0.2% | 0.1% | 0.3% |
| Food, Energy, and Trade | -0.1% | 0.0% | 0.4% | 0.4% | 0.0% |
| Final Demand Goods | |||||
| Total | 0.4% | -0.4% | -0.2% | 0.3% | 1.0% |
| Energy | 2.3% | -3.1% | -1.0% | 1.8% | 5.6% |
| Finished Goods | 0.4% | -0.1% | 0.4% | 1.4% | |
| Final Demand Services | |||||
| Total | -0.1% | 0.4% | 0.3% | 0.1% | 0.3% |
| Trade | 0.2% | 1.3% | -0.5% | -0.5% | 1.1% |
| Intermediate Demand | |||||
| Processed | 0.2% | -1.1% | -0.2% | -0.1% | 0.8% |
| Unprocessed | 1.6% | -3.3% | -5.1% | 2.7% | 2.3% |
| Services | -0.2% | 0.2% | 0.0% | 0.3% | 0.4% |
