Highlights of the producer price index report:

  • Prior final demand -0.2%
  • PPI ex-food and energy +0.3% vs +0.1% exp
  • Final demand +1.1% y/y vs +1.0% exp
  • Ex food and energy +2.1% y/y vs 1.9% exp

Higher than expected inflation pressures, especially outside of energy. It’s a good sign for the Fed, who is arguing that disinflationary pressures are temporary and mask inflationary pressures elsewhere.