PPI Overshoots In Disappointing Follow Up To Favorable CPI Report

In a minor blow to the US disinflation narrative, producer prices rose more than expected in July, according to data released Friday. The final demand index posted a 0.3% increase from June, hotter than the 0.2% consensus expected. Measured against the same month last year, PPI rose 0.8%. That too was warmer than economists anticipated, albeit not by much. Recall that the last PPI report showed wholesale prices effectively flatlining. After revisions, June's 0.1% MoM increase was revised to