A rise in costs for trade services pushed wholesale prices up slightly more than expected in July though trends are not pointing to sustained pressure. The PPI-FD rose 0.2 percent with the year-on-year a little bit deeper in the negative column at minus 0.8 percent. Excluding food & energy, prices rose 0.3 percent which looks high but the year-on-year rate actually slowed to plus 0.6 percent from 0.8 percent. Trade services rose 0.4 percent in the month but here too the year-on-year rate shows no threat, down 2 tenths to plus 0.6 percent.
Energy prices fell 0.6 percent in July and further declines for the August report are in the cards given the ongoing drop in oil prices. Year-on-year, energy prices are down 17.6 percent. Food prices also fell, down 0.1 percent for a year-on-year minus 2.8 percent. Finished goods prices fell 0.1 percent with the year-on-year rate at minus 2.6 percent, but there is some pressure in this component with cars up 0.6 percent in the month and light trucks up 0.7 percent. Price traction here reflects strength in vehicle sales.