US DATA: May PPI +0.2%, core +0.2% (+0.1696% unrounded) for +7.3%
YOY overall and +2.1% YOY core. In core, cars +0.5% but lt trucks -0.6%,
apparel +1.0% (biggest gain since Apr 1981 after dip in Apr), plastics
+1.2%, and paper +0.7%. Food -1.4% (largest drop since -2.4% in Jun’10)
on the back of drops in fruit, veg and meats. Energy +1.5% in an 8th
gain as home heating oil -3.5% but saw rises in elec, lube, and gas
(+2.7%, accounting for 3/4 of the May jump in energy). Intermediate PPI
+0.9% but crude -4.1% on the back of lower energy and foodstuffs; the 3m
growth rate for crude is -0.8%, suggesting inflation moderation.
Overall, this was about as expected.