New York Federal Reserve Building. Photo: Reuters/Keith Bedford
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Weak dollar adds to headline PPI inflation, but domestic price pressures weak
Not news that will support more aggressive Fed action
June 13, 2017 8:54 PM (UTC+8)
Excluding food, energy, and imports, May PPI printed at -0.1% month-on-month. Including trade but excluding food and energy, PPI was up 0.3% month-on-month, vs. a consensus estimate of 0.1%.
The discrepancy apparently stems from import prices. The falling dollar evidently has a significant impact on headline producer prices, but prices in the domestic economy remain muted. That doesn’t strengthen the case for a more aggressive Fed.
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