Looking more at the better than expected PPI data

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.  

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