US: Surprise upside in Producer Prices – TD Securities

Sandeep Kanihama FXStreet Contributor

Analysts at TD Securities note that the US Producer prices surprised to the upside in September, with both headline and core prices falling below market expectations at -0.3% and 0.0% MoM, respectively (market: 0.1% headline; 0.2% core).

Key Quotes

“On an annual basis, headline PPI fell to its lowest level since 2016, while the core series fell by two tenths to 1.7%.”

“All in, pass-through signs from tariff increases are yet to be noticed as core goods inflation remains subdued. Interestingly, a couple of the categories that supported the recent pick-up in PCE inflation actually declined in September: portfolio mgmt. fees and airfares. However, their decline could be offset by the PPI's healthcare component, which posted a notable increase.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

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