Producer Price Inflation Weakest In 3 Years As Brokerage Costs Collapse

Following yesterday's mixed picture for consumer prices, producer prices are expected to rebound from September's shocking plunge and it did, beating expectations of a 0.3% MoM jump (but year-over-year growth in PPI slipped to +1.1% - the lowest since September 2016).

Source: Bloomberg

A major factor in the advance in the index for  final demand services were margins for apparel, jewelry, footwear, and accessories retailing, which rose 2.6 percent. The indexes for outpatient care (partial), inpatient care, food wholesaling, food and alcohol retailing,  and truck transportation of freight also moved higher.

In contrast, prices for securities  brokerage, dealing, investment advice, and related services dropped 8.4 percent as they introduced zero-fees/commission...

Source: Bloomberg

Additionally, prices for iron and steel scrap fell 15.7 percent. The indexes for chicken eggs and passenger cars also declined.

Core PPI rose 0.3% MoM but also slipped on a YoY basis to its coldest since March 2017...

Source: Bloomberg

Once again, Trump's tariffs have done nothing to drive prices higher as every establishment economist decried.