US August PPI 5.4% vs 5.3% expected

  • Prior was 4.7% (revised to 4.8%)
  • PPI final demand m/m +0.4% vs +0.4% expected
  • Prior m/m 0.0% (revised to +0.1%)
  • Ex-food and energy 4.6% y/y  vs 4.6% expected 
  • Prior ex-food and energy 4.2% y/y (revised to 4.3%)
  • Ex-food and energy 0.2% m/m  vs 0.3% expected 
  • Ex-food, energy and trade +4.7% m/m vs +4.7% prior
  • Ex-food energy and trade +0.3% m/m vs +0.4% prior

Given the revisisions, this is a very small upside surprise but given the importance the Fed has placed on inflation reports this week, it’s a meaningful reading and we’re seeing dollar strength as a result. Fed funds futures have ticked up to a 64% chance of a hike this month, though part of that is certainly an 8th day of oil gains.

This article was written by Adam Button at investinglive.com.

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