US DATA: Jan PPI +0.8% in a 7th gain, core +0.5% in worst since +0.8% in
Oct’08 (+0.5155% unrounded) for YOY rates of +3.6% overall & +1.6% core.
Within core, nonwood furniture +5.6%, pharma +1.4%, alcohol +1.0%,
plastics +0.6%, jewelry +2.1%, tires +1.7%, sanitary paper +1.9%, and
mensware +0.5% contributed. Many of these appear to be start-of-yr tests
of whether higher list prices will hold. We’d prefer to focus on still
mild YOY rates, though this is not a good start to the yr. Food +0.3%
as butter, beef, soft drinks and veg surged. Energy +1.8% as jumps in
gas and fuel oil were offset by drops in nat gas and electric. Intermed
PPI +1.1% and crude +3.3% show there are still pipeline pressures.