The sturdy 0.4% U.S. January PPI gains
The sturdy 0.4% U.S. January PPI gains for both the headline and core beat estimates, after a brief price reprieve in December, but big hurricane-boosted price gains over the prior three months. Analysts saw a firm 0.7% rise for goods prices led by a 3.4% energy price surge, alongside a 0.2% drop for food. Analysts saw a 0.3% service price rise, with gains of 0.3% for trade services and 0.4% for transportation and warehousing services. Analysts expect a flat PPI figure in February with a 0.2% core price gain, with weakness due to an energy price restraint after the January gain. The y/y PPI rise should rise to 2.8% from 2.7% in January, 2.6% in December and a 3.1% November y/y rise that included a 3-handle for the first time since January of 2012. The y/y core PPI rise should rise to 2.5% from 2.2% in January and 2.3% in December. On the old SOP basis, analysts saw a 0.7% PPI rise after a flat December figure, with a 0.1% SOP core price rise after a flat December figure. Annual revisions for PPI were released on Tuesday.