• PPI +15.0% vs +17.7% y/y expected
  • Prior +24.6%

It's all about the details when it comes to the report, so don't get fooled by the larger-than-expected headline drop. If you strip out energy prices, total producer prices actually increased by 1.1% in January. Here's the monthly breakdown:

  • Energy prices -9.4%
  • Intermediate goods +0.8%
  • Capital goods +1.2%
  • Non-durable consumer goods +1.5%
  • Durable consumer goods +1.6%