US PPI: Trend continues to point higher - Wells Fargo

The PPI Index rose in May 0.5%. Analysts at Wells Fargo point out that over the past year, the PPI for final demand is up 3.1%, consistent with moderate firming in inflation.

Key Quotes:

“Producer price inflation came in hotter than expected in May amid a sizeable jump in energy prices. Over the past year, the PPI is up 3.1 percent, which is the biggest gain in six years.”

“Although energy has been a key driver of the pickup in PPI, prices are trending up more broadly. Our preferred measure of core PPI—ex food, energy and trade services—rose to 2.6 percent on a year-ago basis, which is up from 2.1 percent last May.”

“Pipeline pressures picked up in May. Input costs for processed and unprocessed goods as well as services have all increased more than 3 percent over the past year and suggest further upward pressure on final selling prices in the months to come.”

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 securities. 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 Forex 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.