US DATA: Jun PPI +0.1%, core +0.2% (+0.2197% unrounded) for +0.7%
YOY overall and +2.6% YOY core. Food +0.5% in a rebound as eggs,
poultry, meats, veg rose. Energy -0.9% in a 4th drop, as LPG -24.7%, and
diesel, home heating oil and elec fell (elec was -a record -2.1% SA on
+0.5% NSA; prior record was -1.8% in Jun’04). Gas, which analysts had
expected to lower the overall PPI, printed -4.8% NSA but +1.9% SA. Core
was boosted by +1.8% trailers, +1.4% lt trucks, +1.1% appliances, +1.1%
pet food. Intermediate PPI printed -0.5% and crude -3.6%. YOY rate for
intermediate is now -1.3% and for crude -11.4%. Good PPI numbers will
take pressure off corp margins but probably will not translate into
lower CPI.