US: PPI picks up, still benign - Wells Fargo
|Analysts from Wells Fargo, explained that the 0.3% rise in the core PPI (Producer Price Index) during September reflected solid gains in energy and food prices.
Key Quotes:
“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.
“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.”
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