ECON: Core Inflation at Producer Level Lowest Since Nov 2010
- July PPI 0.0 vs +0.3 forecast, +0.8 previous
- Core PPI +0.1 vs +0.2 forecast, +0.2 previous
- Annual PPI +2.1 vs +2.4 forecast
- Annual Core PPI +1.2 vs +1.4 forecast
- Annual PPI lowest since Nov 2010
- Market Reaction: Minimal, but moderately positive for bond markets, maybe. 10's had already rejected a break of 2.724 and were improving since 8:10am. They were at 2.715 before PPI and are now at 2.710.
The Producer Price Index for finished goods was unchanged in July, seasonally adjusted, the
U.S. Bureau of Labor Statistics reported today. Prices for finished goods moved up 0.8 percent
in June and 0.5 percent in May. At the earlier stages of processing, prices received by
manufacturers of intermediate goods also were unchanged in July, and the crude goods index
rose 1.2 percent. On an unadjusted basis, prices for finished goods advanced 2.1 percent for the
12 months ended July 2013.