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US PPI: Above expectations but weak inflation likely to persist - Wells Fargo

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 17, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    Analysts from Wells Fargo, note that today’s Producer Price Index (PPI) report showed higher-than-expected numbers, but the overall trend remains soft.

    Key Quotes:

    “PPI for final demand rose 0.1 percent in January. While the overall trend remains soft, weakness is moderating. Energy continues to weigh on the headline, but a pickup in services inflation was broadly based.”

    “Ex-food, energy and trade services—our preferred measure of PPI—rose 0.2 percent and is up 0.8 percent from a year ago.

    “The general softness in input prices suggests that weak inflation will persist in the coming months as businesses have little need to raise selling prices, in our view, to maintain margins.”
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