Core goods, which exclude volatile food and energy prices, edged up 0.1%, indicating that broader inflationary trends remain contained outside of key commodities. The consistent rise in energy prices, however, raises concerns about potential pass-through effects on transportation and logistics costs.
Service Sector Inflation Persists, Led by Accommodation and Retail
The services component of the PPI advanced 0.3%, marking the sixth consecutive monthly increase. A substantial 5.7% spike in traveler accommodation services contributed significantly to the rise, alongside higher retail margins for automobiles, food, and apparel. Transportation and warehousing services saw a 0.6% increase, while trade services posted a modest 0.1% gain.
On the downside, margins for fuel and lubricant retailing dropped 9.8%, and prices for securities brokerage and physician care declined, signaling sector-specific…
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