Prior was +6.0% (revised to +5.7%)PPI +1.1% m/m vs +0.7% expectedPrior m/m reading was +1.4%Ex food and energy +4.9% y/y vs +5.4% expectedEx food and energy +0.4% m/m vs +0.5% expectedPrior m/m ex food and energy +1.0% (revised to +0.7%)Ex food, energy and trade +5.1% vs +4.4% priorEx food, energy and trade +0.8% vs +0.5% prior
The headline highlights the pipeline problem for US inflation as the Iran war continues and it will feed into PCE inflation next week. The market will take some solace in the downward revisions and the core readings. They offer a similar take to CPI, which showed that higher prices were largely lodged in energy. However when you also strip out trade, there is a significant acceleration that indicates that tariff carve outs from the Supreme Court or other changes that won’t last are dragging.
This article was written by Adam Button at investinglive.com.