Trade services jumped 1.1 percent in October on top of September's 0.8 percent increase. Gains here hint at wide and emerging price traction in the wholesale economy in what perhaps is a harbinger for price gains at the consumer level. Legal services and health care showed special traction in the month. Food also showed traction, up 0.5 percent on gains for vegetables, while energy, reflecting a drop back for gasoline, was flat.
Year-on-year rates are improving with overall producer prices at 2.8 percent and at 2.4 and 2.3 percent respectively for ex-food and ex-energy and ex-food, ex-energy, ex-trade services. Today's results point to upside risk for tomorrow's CPI report where the consensus forecasts call for subdued readings.
Recent History Of This Indicator:
A rebound for services lifted producer prices in September which came in at 0.4 percent overall and also when excluding food & energy. When also excluding trade services, prices rose only 0.2 percent. For October, forecasters see the PPI-FD at 0.1 percent, at 0.2 percent less food and energy, and at 0.2 percent less food, energy and trade services.
A rebound for services lifted producer prices in September which came in at 0.4 percent overall and also when excluding food & energy. When also excluding trade services, prices rose only 0.2 percent. For October, forecasters see the PPI-FD at 0.1 percent, at 0.2 percent less food and energy, and at 0.2 percent less food, energy and trade services.
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