March Producer Prices Disappoint, Drop Most Since August

Tyler Durden's picture

Despite a modest rise in Final Demand producer prices to 2.3% YoY (from +2.2% YoY), this was a miss..

Highest PPI Final Demand YoY in 5 years...

 

But combined with a 0.1% decline MoM - the biggest drop since August 2016 - suggests the inflationary impulse is fading.

 

The full breakdown shows Core PPI was unchanged, missing expectations of a 0.2% MoM gain (and missing the YoY expectation of a 1.8% gain).

PPI Services: A 4.1-percent drop in the index for loan services (partial) led the March decline in prices for final demand services. The indexes for apparel, footwear, and accessories retailing; securities brokerage, dealing, and investment advice; health, beauty, and optical goods retailing; and truck transportation of freight also moved lower. The indexes for food and alcohol retailing, machinery and equipment parts and supplies wholesaling, and insurance also advanced.

PPI Goods: Leading the March decrease in prices for final demand goods, the gasoline index fell 8.3 percent. Prices for liquefied petroleum gas; jet fuel; hay, hayseeds, and oilseeds; and integrated microcircuits also moved lower. In contrast, the index for motor vehicles rose 0.9 percent.

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Fake Trump's picture

Deflation is a more difficult issue than inflation. People not spending.

NugginFuts's picture

haha spending..... that's so 1999! 

Creepy_Azz_Crackaah's picture

No, no, NO!  Most... since Lehman.

bpj's picture

No spending is right, no restaurants, no vacations, no new cars, no home improvemnet