US PPI: Signals of stronger inflation pressures - Wells Fargo
|Analysts from Wells Fargo, point out that led by a rebound in services prices, the PPI for final demand increased 0.5% in April. They warned that the report show signals of stronger inflation pressures at the start of the second quarter.
Key Quotes:
“Proving March’s modest decline was short-lived, PPI for final demand increased at a stronger-than-expected 0.5 percent in April. Price gains were broad based with solid increases in food (0.9 percent), energy (0.8 percent) and services (0.4 percent).”
“Ex-food, energy and trade services—our preferred measure of PPI—jumped 0.7 percent on the month and is rising at its fastest annual pace on record at 2.1 percent.”
“With gains broad based and annual rates in the headline and core measures standing at a series high, today’s PPI report signals stronger inflation pressures at the start of Q2 and also keeps the Fed on track for a June interest rate hike.”
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.