Core Producer Price Inflation Tumbles To Weakest Since 2016

Following the surprise acceleration in consumer prices, producer prices were expected to re-accelerate after diverging for three months. While the MoM gain in headline PPI was a slight disappointment (+0.1% vs +0.2% MoM) but on a YoY basis it met expectations at +1.3% (still well below CPI)…

Source: Bloomberg

However, core producer price gains (ex-food and energy) were the weakest since August 2016 at just +1.1% YoY…

Source: Bloomberg

Certainly nothing here to spook The Fed into any hawkish action.