PPI Inflation Firms in September
|Reflecting solid gains in energy and food, the PPI for final demand increased a stronger-than-expected 0.3 percent in September. While still benign, producer prices have picked up over the past year.
Solid Food and Energy Prices Gains
-
Following back-to-back 0.4 percent declines in August and July, PPI for goods increased 0.7 percent last month. Over 60 percent of the gain can be attributed to energy, though wholesale food prices increased a solid 0.5 percent.
-
Services inflation maintained its steady course, edging up 0.1 percent for the second consecutive month as an increase in transportation/warehousing offset a decline in trade services.
Core Producer Price Inflation Strengthening
-
Our preferred measure of core PPI, which excludes food, energy and trade services, rose a stronger-than-expected 0.3 percent. September's performance pushed the year-over-year rate up to 1.5 percent, the fastest pace since November 2014.
-
Admittedly still tame, producer prices have picked up over the past year and support our outlook for stronger inflation pressures in the coming quarters.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.