Despite a 2.5% MoM rise in Energy costs (9.7% rise in gasoline), Producer Prices were unchanged in October as food deflation weighed on the headline index (with YoY Final Demand up 0.8% YoY – the most sicne Dec 2014). Core PPI stalled at +1.2% YoY (missing expectations of a 1.6% gain YoY) as asset management fees tumbled 5.7% dragging the index lower.
The October increase in the index for final demand goods can be traced primarily to a 9.7-percent jump in gasoline prices
Simply put – the price of goods was up and services down – Within final demand in October, a 0.4-percent increase in the index for final demand goods offset a 0.3-percent decline in prices for final demand services
A major factor in the October decrease in the index for final demand services was prices for securities brokerage, dealing, investment advice, and related services, which fell 5.7 percent.
This is the biggest drop in asset management fees since 2001…
The indexes for food and alcohol retailing; fuels and lubricants retailing; apparel, jewelry, footwear, and accessories retailing; consumer loans (partial); and hospital outpatient care also moved lower. Conversely, prices for truck transportation of freight increased 0.3 percent. The indexes for machinery, equipment, parts, and supplies wholesaling and guestroom rental also advanced.
via http://ift.tt/2f03I8b Tyler Durden