US July PPI +0.8% y/y vs +0.7% expected

<ul><li>Prior was +0.1% y/y (revised to +0.2%)</li><li>PPI final demand m/m +% vs +0.2% y/y expected</li><li>Prior was +0.1% m/m (revised to 0.0%)</li></ul><p>Ex food and energy:</p><ul><li>+2.4% y/y vs +2.3% expected (prior +2.4%)</li><li>+0.3% m/m vs +0.2% expected (prior +0.1% revised to -0.1%)</li><li>Goods ex food and energy 0.0% m/m</li></ul><p>More details:</p><ul><li>Goods +0.1% m/m</li><li>Services +0.5% m/m</li><li>Foods +0.5% m/m</li></ul><p>There is some selling in bonds on these headlines and a rise in USD/JPY. US 10-year yields are up 3 bps to 4.13% since the release while USD/JPY rose around 20 pips.</p><p>That's an outsized reaction but highlights a renewed sensitivity to inflation.</p><p>Digging through the details, distribution was a source of upside pressure on the services side.</p>

This article was written by Adam Button at www.forexlive.com.