Highlights for US PPI for September
- US PPI month on month for September came in at 0.2% versus 0.2% expected
- PPI final demand YoY 2.6% versus 2.7%
- excluding food and energy +0.2% versus 0.2% expected. Prior month -0.1%
- excluding food and energy YoY 2.5% versus 2.5% expected. Prior month 2.3%
- excluding food, energy, trade +0.4% versus +0.2%. Prior month +0.1%
- excluding food and energy trade YoY remains unchanged at 2.9%.
The headlines show that producer prices rose for the 1st time in 3 months. The gains reflect surges and airfares and rail transportation costs
PPI excluding food and energy and trade services, a measure some prefer because it strips out the most volatile components, rose 0.4% which was the most since January. However the game is still the same as August's 2.9% gain.
The monthly increase stem partly from a 1.8% rise in transportation and warehousing services, including a 5.5% jump in airline passenger services (highest since 2009). Real transportation of freight and mail also rose sharply up 1.4% which was the most since 2012.
Service prices increased 0.3%. The cost of goods fell -0.1% reflecting declines in both food and energy. The decreasing goods prices was a 1st since May 2017.
Energy prices fell -0.8% which was the biggest drop since March.
Food prices dropped -0.6% (same as last month).
One third of the advanced file demand services stem from airline passenger services (mostly airfares)
US CPI data will be out on Thursday. This is thought to be the more important price as it reflects prices being pushed to the consumer
