While not quite as enjoyable for the average joe as consumer prices deflation, Producer Prices fell 0.1% MoM in July - the first 'deflationary impulse' since August 2016.
Both goods and services prices fell - with services the biggest driver (which is odd since that's where all the job growth has been)...
Most of the July decrease in PPI services can be traced to margins for final demand trade services, which fell 0.5 percent. (Trade indexes measure changes in margins received by wholesalers and retailers.) Additionally, prices for final demand transportation and warehousing services declined 0.8 percent. In contrast, the index for final demand services less trade, transportation, and warehousing advanced 0.2 percent.
About 60 percent of the July decrease in prices for final demand services is attributable to a 5.8-percent drop in margins for chemicals and allied products wholesaling. The indexes for machinery and equipment wholesaling; portfolio management; apparel, footwear, and accessories retailing; airline passenger services; and fuels and lubricants retailing also moved lower.
Prices for final demand goods edged down 0.1 percent in July after inching up 0.1 percent in June. In July, the index for final demand energy fell 0.3 percent, and prices for final demand goods less foods and energy declined 0.1 percent. The index for final demand foods was unchanged.
A major factor in the July decrease in prices for final demand goods was the index for gasoline, which moved down 1.4 percent. Prices for beef and veal, utility natural gas, motor vehicles, and basic organic chemicals also fell.
Of course this should not hold The Fed back from hiking rates because - well it's obviously transitory...