US PPI was flat in July, with the core rate 0.1% higher, a little softer than forecast. There were no revisions to June where the headline and ex-food and energy component were each up 0.3%. On a 12-month basis, PPI slowed to a 3.3% y/y pace versus 3.4% y/y (the latter was the highest since November 2011), while the core also cooled to 2.7% y/y from 2.8% y/y (was highest since September 2011). Goods prices were 0.1% higher last month, the same as in June, with food dipping 0.1% versus -1.1%, and energy falling 0.5% compared to the prior 0.8% gain. Services costs declined 0.1% after June’s 0.4% gain. A soft number for PPI but Initial claims remain at multi-decade lows. US initial jobless claims dropped 6k to 213k in the week ended August 4, following the 2k increase to 219k (revised from 218k) in the July 28 week. That brought the 4-week moving average down to 214.25k from 214.75k (revised from 214.5k). Continuing claims rose 29k to 1,755k in the week ended July 28 after dropping 21k to 1,726k (revised from 1,724k) previously.
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