PPI MoM beats estimates The US PPI was better than expected at 0.4% vs 0.1% est. The YoY rose by 2.8% vs 2.4% estimate. The ex Food and energy also beat t 2.4% vs 2.2% estimate.
Other tidbits from the data:
- Services surged by 0.5% on the month. It rose by 0.4% in September. Half of the gain was attributed to a 24.9% gain in «margins for fuel and lubricants retailing.» That helped to offset a 4.6% drop in the cost of gasoline. That was a reversal of part of the increase of 10.9% in September due to the hurricanes.
- The 2.8% YoY was the largest since Feb 2012
- The 0.2% gain in Ex food and energy was the 3rd straight month of similar rises.
- A weakening dollar could gradually lift core PPI. The dollar has lost 5.4% this year.
- Food prices rose 0.5%
- Core goods increased 0.3%. That was the same in September.
- Healthcare increased 0.3%. The healthcare costs feed into the PCE which is the Fed’s favored inflation measure.