US DATA: PPI Adds To Non-Used Car Core Goods Disinflation Case
Jun-14 12:46By: Chris Harrison
- PPI inflation was generally softer than expected in May, with total final demand -0.3% M/M (cons -0.1%) after +0.2%, ex food, energy & trade seeing a notable miss but ex food & energy mostly in line.
- On that ex food, energy & trade miss, it came in at -0.04% M/M in May vs consensus 0.2%. Revisions were mixed on net but leave weaker momentum, with downward in April to 0.11% (initial 0.18%) but upward to 0.18% in March (initial 0.12%), and a 3-month annualized increase of 1%.
- The latest dip into deflation tallies well with yesterday’s CPI core goods ex used vehicles at 0.00% M/M after an equally tepid 0.04% M/M back in April. Continued sizeable improvements in supply chain pressures suggest potentially further moderation ahead.
