US PPI: Down in March as energy recovery pauses - Wells Fargo
|Analysts from Wells Fargo, noted that the Producer Price Index in March showed a negative number, after six months of gains. They see little change in the underlying trend in inflation.
Key Quotes:
“Producer price inflation ticked down 0.1 percent in March, snapping six months of gains. Ex-food, energy and trade services, the PPI also slipped 0.1 percent and signals little change in the underlying trend in inflation.”
“Reflationary pressures continue to look fairly modest, with the PPI for final demand edging back 0.1 percent in March. As expected, energy was a drag on the headline, down 2.9 percent. Overall prices for goods, however, fell only 0.1 percent on rising prices for food and core goods. Food prices are now up on a year-ago basis for the first time in more than two years, while core goods prices are up 2.3 percent over the past year.”
“After strong gains the first two months of the year, prices for services ticked down 0.1 percent. Increasing only 1.5 percent over the past year, services inflation remains little changed on trend.”
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