US Producer Inflation PPI Keeps the Pace, Despite the Growing Global Economic Weakness
PPI inflation ticked higher in october, while the global economy is declining
Skerdian Meta•Friday, November 13, 2020•1 min read
Inflation took a big hit in spring, as crude oil prices tumbled lower. The decline in oil prices translated into lower PPI (producer price index) inflation, which spilled over onto the CPI (consumer price index). But, inflation bounced higher during summer, after the reopening of the global economy.
However, the global economy is heading back into recession with the new lockdowns, which has turned inflation negative in some places, particularly in the Eurozone. In the US, CPI inflation is holding up a bit better, and the PPI report today actually showed a pickup for October.
US PPI Inflation Report for October
- October PPI +0.3% m/m vs +0.2% expected
- September PPI was +0.4%
- Ex food and energy +0.1% vs +0.2% exp
- Prior ex food and energy +0.4%
- Ex food, energy and trade +0.2% vs +0.2% exp
- Final demand y/y +0.5% vs +0.4% exp
- Prior final demand +0.4%
- Ex food and energy y/y +1.1% vs +1.2% exp
- Ex food, energy and trade +0.8% y/y vs +0.9% exp
Producer price inflation is not a big factor at the moment, but given the drop in oil prices and the fact that we’re in the midst of a raging global pandemic, it could certainly be worse.
- Check out our free forex signals
- Follow the top economic events on FX Leaders economic calendar
- Trade better, discover more Forex Trading Strategies
- Open a FREE Trading Account
ABOUT THE AUTHOR
See More
Skerdian Meta
Lead Analyst
Skerdian Meta Lead Analyst.
Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
Related Articles
Comments
Sidebar rates
Related Posts
Save
Join 350 000+ traders receiving Free Trading Signals
Alerts
Rates
Calendar
Signals