According to analysts from Wells Fargo, the upward trend in core producer prices is expected to continue as input costs picked up last month.
“Producer prices rose 0.2 percent in February amid another strong month for services inflation. Goods prices edged down despite another increase in non-food/energy products. Ex-food, energy and trade services (measured as margins), producer prices rose ahead of expectations and advanced 0.4 percent. On a year-ago basis, the “core-core” is up 2.7 percent compared to 1.8 percent last February.”
“Healthcare services ticked up and, on a year-ago basis, have risen by the most since 2013. The pickup indicates healthcare will provide a lift to the Fed’s closely watched PCE deflator.”
“Input cost growth for goods and services quickened in February. Higher prices for intermediate products suggest producer prices will continue to move up in the coming months, although the pace points to pressures remaining manageable in the near term.”
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.