Thu, Jan 21, 2021 @ 17:16 GMT
Home Contributors Fundamental Analysis PPI Edges Down in March and It Wasn't Just Oil

PPI Edges Down in March and It Wasn’t Just Oil

Producer price inflation ticked down 0.1 percent in March, snapping six months of gains. Ex-food, energy and trade services, the PPI also slipped 0.1 percent and signals little change in the underlying trend in inflation.

Energy Recovery Pauses, Food Prices Rising

Reflationary pressures continue to look fairly modest, with the PPI for final demand edging back 0.1 percent in March.

As expected, energy was a drag on the headline, down 2.9 percent. Overall prices for goods, however, fell only 0.1 percent on rising prices for food and core goods. Food prices are now up on a year-ago basis for the first time in more than two years, while core goods prices are up 2.3 percent over the past year.

Input Prices for Goods Continue to Rise

After strong gains the first two months of the year, prices for services ticked down 0.1 percent. Increasing only 1.5 percent over the past year, services inflation remains little changed on trend.

Outside of energy, input prices for goods continue to rise. Food & feed and core intermediate goods prices, both for processed and unprocessed, rose over the month.

Wells Fargo Securities
Wells Fargo Securities Economics Group publications are produced by Wells Fargo Securities, LLC, a U.S broker-dealer registered with the U.S. Securities and Exchange Commission, the Financial Industry Regulatory Authority, and the Securities Investor Protection Corp. Wells Fargo Securities, LLC, distributes these publications directly and through subsidiaries including, but not limited to, Wells Fargo & Company, Wells Fargo Bank N.A, Wells Fargo Advisors, LLC, and Wells Fargo Securities International Limited. The information and opinions herein are for general information use only. Wells Fargo Securities, LLC does not guarantee their accuracy or completeness, nor does Wells Fargo Securities, LLC assume any liability for any loss that may result from the reliance by any person upon any such information or opinions. Such information and opinions are subject to change without notice, are for general information only and are not intended as an offer or solicitation with respect to the purchase or sales of any security or as personalized investment advice. Wells Fargo Securities, LLC is a separate legal entity and distinct from affiliated banks and is a wholly owned subsidiary of Wells Fargo & Company © 2010 Wells Fargo Securities, LLC.

Featured Analysis

Learn Forex Trading