US producer prices came in flat for July, with the year-over-year rate dropping to 4.7% from 5.5% in June, a decline of 0.8 percentage points in a single month. Energy prices fell 3.1% month-over-month, dragged lower by a 5.7% drop in gasoline, while services ticked up 0.2%. Wall Street had penciled in something closer to 5%. For the bond market, the 4.7% year-over-year reading is likely to push yields lower at the short end of the curve, even though core services inflation at 0.4% monthly remains above the pace consistent with the Fed’s 2% target.
Source: Read the original article
