US Producer Prices soared at 3.4% YoY in June – far above the expectation of +3.1%, and its highest level since Nov 2011. Energy goods and Trade services rose most MoM, but Food prices dropped 1.1% MoM.
Under the covers:
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BLS said final demand producer prices rose 0.5% in May
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Final demand ex food, energy rose 0.3% m/m vs est. up 0.2%
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Final demand rose 3.4% y/y vs est. up 3.1%
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Final demand ex food, energy rose 2.8% y/y vs est. up 2.6%
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Final demand ex food, energy and trade services rose 0.3% m/m
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Final demand personal consumption rose 0.3% m/m
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Final demand personal consumption rose 3% y/y
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Health care services (NSA) rose 2.1% y/y; up 0.2% m/m
More than 40 percent of the advance was due to higher retail margins for fuel.
The gain also reflected a 1.3 percent month-over-month jump in truck transportation of freight, the largest in data back to July 2009.
In contrast, the cost of goods rose 0.1 percent in June from a month earlier, reflecting cooling energy prices, after a 1 percent May surge.
Certainly another high inflation print that The Fed will have trouble ignoring if it wants to tilt to a dovish hike.
via RSS https://ift.tt/2ujqXnm Tyler Durden