US DATA: Apr PPI -0.2%, core +0.2% (0.01653% unrounded) for +1.9%
YOY overall (a 7th month of slowing and a low since ’09) and +2.7% YOY
core. Foods +0.2% as eggs, beef, and fruit jumped. Energy -1.4% as gas
-1.7% and res nat gas -3.1% (best since -3.7% in Jan), and these lowered
the overall index to less than expected. In core, plastics +0.6%, pharma
+0.4% (represents 1/4 the core gain), civ aircraft +0.3%, alcoholic
beverages +0.3% all contributed to keeping core higher; these were
moderated by drops in jewelry, tools, appliances, and cleaning products.
Intermediate PPI was -0.5% (mainly due to energy; chemical prices rose,
accounting for 80% of the residual gain) and crude -4.4% (where core
felll due to lower metals scrap prices). Overall a good report.