Updated: 10-Aug-17 09:30 ET

July PPI

Updated: 10-Aug-17 09:30 ET

Highlights

• The PPI for final demand declined 0.1% in July (Briefing.com consensus +0.2%) while the index for final demand less foods and energy ("core PPI") also declined 0.1% (Briefing.com consensus +0.2%).

Key Factors

• On a year-over-year basis, the index for final demand is up 1.9% versus a 2.0% increase for the 12 months ending in June. The index for final demand less foods and energy is up 1.8% versus 1.9% for the 12 months ending in June.
• Prices for final demand services fell 0.2% in July and accounted for more than 80% of the decrease in final demand prices. Prices for final demand goods slipped 0.1%.
• The index for processed goods for intermediate demand declined 0.1% in July while the index for unprocessed goods for intermediate demand declined 0.4%
• The index for services for intermediate demand fell 0.3% in July, which was the largest drop since a 0.5% decrease in October 2015

Big Picture

• The Producer Price Index (PPI) report for July was weaker than expected. The key takeaway from the report is that the downturn in producer prices will presumably keep a lid on consumer inflation expectations.

Category	JUL	JUN	MAY	APR	MAR
Final Demand	-0.1%	0.1%	0.0%	0.6%	0.0%
Core (excluding ...)
Food and Energy	-0.1%	0.1%	0.3%	0.5%	0.2%
Food, Energy, and Trade	0.0%	0.2%	-0.1%	0.7%	0.0%
Final Demand Goods
Total	-0.1%	0.1%	-0.5%	0.4%	-0.1%
Energy	-0.3%	-0.5%	-3.0%	0.7%	-2.9%
Finished Goods	-0.2%	0.2%	-0.7%	0.6%	-0.2%
Final Demand Services
Total	-0.2%	0.2%	0.3%	0.6%	0.2%
Trade	-0.5%	-0.2%	1.1%	0.4%	0.4%
Intermediate Demand
Processed	-0.1%	-0.2%	0.1%	0.5%	-0.3%
Unprocessed	-0.4%	1.5%	-3.0%	2.6%	-3.4%
Services	-0.3%	0.6%	0.0%	0.6%	0.0%