US PPI y/y
- Prior was +0.1% y/y (revised to +0.2%)
- PPI final demand m/m +0.3% vs +0.2% y/y expected
- Prior was +0.1% m/m (revised to 0.0%)
Ex food and energy:
- +2.4% y/y vs +2.3% expected (prior +2.4%)
- +0.3% m/m vs +0.2% expected (prior +0.1% revised to -0.1%)
- Goods ex food and energy 0.0% m/m
More details:
- Goods +0.1% m/m
- Services +0.5% m/m
- Foods +0.5% m/m
There is some selling in bonds on these headlines and a rise in USD/JPY. US 10-year yields are up 3 bps to 4.13% since the release while USD/JPY rose around 20 pips.
That's an outsized reaction but highlights a renewed sensitivity to inflation.
Digging through the details, distribution was a source of upside pressure on the services side.
