US: Producer Price index (PPI) may have slipped again in August by 0.1% - RBS

Research Team at RBS, notes that the US Producer Price index (PPI) fell in July by 0.4%, the first decline in four months, and may have slipped again in August, perhaps by 0.1%.

Key Quotes

“The weakness in the PPI in July was broad-based, with declines registered in energy, food, and trade services. Prices excluding those three volatile components were flat. In August, energy costs may have declined for a second straight month, sliding by about 1.5% on the back of lower prices for gasoline, fuel oil and diesel fuel.

Food prices could have also slipped for a second month, by slightly more than the 0.4% decline recorded in July. Continued declines in prices for beef and veal, pork and poultry products as well as vegetables may have more than offset increases in prices of fresh fruits and eggs. In contrast, trade services could have rebounded in August. In addition, a modest reacceleration in core services prices may have pushed the core PPI up by 0.1% in August.”