US PPI: Flat in October, pointing upward in the future - Wells Fargo
|The Producer Price Index reading in October was showed no changed. According to analysts from Wells Fargo, it was the result of gains in goods, offset by a decline in services prices. They see prospects of strengthening demand pointing to upward inflation pressures.
Key Quotes:
“Missing expectations, PPI for final demand remained flat in October. Goods prices rose 0.4 percent, largely attributable to higher energy prices.”
“Our preferred measure of core PPI, which excludes food, energy and trade services, slipped 0.1 percent on the month, but stands at its highest year-over-year pace since September 2014. The surprising U.S. election outcome has substantially altered the economic outlook, with prospects for stronger growth and faster inflation in the medium-term. We agree and expect PPI inflation to pick up from its current sluggish pace.”
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