Producer Prices Rise More Than Expected In August As Luxury Hotel Costs Soar
Both headline and core producer prices rose more than expected in August.
PPI +1.8% YoY (+1.7% exp)
PPI Core +2.3% (+2.2% exp)
With a major divergence continuing between goods and services pricing…
Under the hood shows a mixed message:
A major factor in the increase in prices for final demand services was the index for guestroom rental, which moved up 6.4 percent.
The indexes for fuels and lubricants retailing; apparel, footwear, and accessories retailing; chemicals and allied products wholesaling; gaming receipts (partial); and insurance also advanced. Conversely, margins for machinery and vehicle wholesaling declined 4.2 percent. The indexes for health, beauty, and optical goods retailing and for support activities for oil and gas operations also decreased.
Almost two-thirds of the August decline in the index for final demand goods can be traced to prices for gasoline, which dropped 6.6 percent. The indexes for fresh and dry vegetables, diesel fuel, corn, home heating oil, and ethanol also moved lower. In contrast, prices for meats advanced 3.0 percent.
Time for some more rate-cuts?
Wed, 09/11/2019 – 08:40
via ZeroHedge News https://ift.tt/2N8STGA Tyler Durden