While not quite as enjoyable for the average joe as consumer prices deflation, Producer Prices fell 0.1% MoM in July – the first ‘deflationary impulse’ since August 2016.
Both goods and services prices fell – with services the biggest driver (which is odd since that’s where all the job growth has been)…
Most of the July decrease in PPI services can be traced to margins for final demand trade services, which fell 0.5 percent. (Trade indexes measure changes in margins received by wholesalers and retailers.) Additionally, prices for final demand transportation and warehousing services declined 0.8 percent. In contrast, the index for final demand services less trade, transportation, and warehousing advanced 0.2 percent.
This post was published at Zero Hedge on Aug 10, 2017.
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