US Producer Prices Disappoint But Core Hovers At 7-Year Highs

After China's dismal deflationary impulse (PPI/CPI slumping), US Producer Prices also disappointed, dropping 0.2% MoM - the biggest drop since Aug 2016.

Final Demand Producer Price growth YoY is at its weakest since August 2017...

However while Core PPI disappointed more, printing +2.7% YoY vs +3.0% YoY expectations (and fell 0.1% MoM against expectations of a 0.2% rise), it remains near its highest since 2011...

Finally, we note that Final Demand Consumption fell 0.2% MoM.

So disappointments but Core PPI still high - What Will Jay Powell Do?