US PPI: Core inflation maintains trend - Wells Fargo

According to analysts from Wells Fargo, the Producer Price Index remained firm in August, driven by sizeable gains in energy prices, but not Harvey-related. 

Key Quotes: 

“Rising from a modest decline in July, PPI-final demand recorded its strongest monthly gain since April. Three quarters of the headline’s gain was accounted for by a 0.5 percent increase in goods prices, with three-quarters of that increase attributed to a 9.5 percent jump in wholesale gasoline prices.”

“Pipeline pressures were mixed, with intermediate processed goods up 0.4 percent and unprocessed goods down 0.7 percent. 

“Our preferred measure of core PPI inflation, prices excluding food, energy and trade services, beat expectations and increased a trend-like 0.2 percent m/m and 1.9 percent yr/yr.”

“In spite of the optics that show energy leading the headline gain, today’s report does not capture the impact of Hurricane Harvey, as prices are collected during the week including the 13th. Harvey’s impact will be reflected in next month’s report.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these securities. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Forex involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.