PPI (MoM) (US)
Producer Inflation Has Declined for 3 Months in US
Starts Thursday, June 11, 2020 at 12:30
Updated Thursday, June 4, 2020
Last year, prices increased in the first half after a pretty soft year in 2017, but in August they declined by 0.1% against 0.2% expected. In September, the producer price index (PPI) came back to normal, increasing by 0.2%. In October, PPI suddenly jumped by 0.6%. In November though, the pace of increase fell to just 0.1%, so back to normal. But they turned negative again in December, posting a 0.2% decline that month and a 0.1% decline in January. Although, core PPI increased by 0.3% that month. So, it seems that the falling Oil prices towards the end of last year had a negative impact on PPI inflation. In February the PPI returned to positive territory increasing by 0.1% as Oil prices started increasing in January. In March we saw a 0.6% jump. Although, the PPI inflation cooled off again and in May and June it came at just 0.1%. Although it ticked higher in July to 0.2%, core PPI turned negative, declining by 0.1%. In August, core inflation increased by 0.1% while core CPI jumped 0.3% higher. The last several months of 2019 were volatile and in November core PPI declined by 0.2% while headline PPI remained flat. But PPI has declined for three straight months now, from February to April, as Oil prices declined. Follow us for live coverage of the economic calendar by experienced analysts.
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About PPI (MoM) (US)
Released by the Bureau of Labor Statistics, the Producer Price Index (PPI) measures the change in the prices of commodities for U.S. producers. A secondary economic metric, PPI is designed to act as a production-level indicator facing inflation. PPI is also very useful in identifying trends and volatility in commodity pricing.PPI (MoM) is made available on a monthly basis. A high reading is commonly interpreted as bullish for the USD, while lower than expected numbers are viewed as bearish. In a similar fashion as CPI, PPI reports are used by the U.S. FED to craft monetary policy decisions.