Yesterday’s import price index was softer than forecast and there are no signs of pipeline inflation pressure. Here are the highlights of the producer price index report:
- Prior reading was +0.7% y/y
- Ex-food and energy 1.4% vs 1.3% exp
- Prior ex-food and energy was 1.3%
Month-over-month terms:
- PPI +0.4% vs +0.4% exp
- Ex-food and energy +0.3% vs +0.1% exp
The numbers are a touch strong but the Labor Dept said nearly half of the core PPI increase was attributable to a tobacco price rise.
