
New York Federal Reserve Building. Photo: Reuters/Keith Bedford
Asia UnhedgedReal-time intel on what moves markets
Weak dollar adds to headline PPI inflation, but domestic price pressures weak
Not news that will support more aggressive Fed action
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.
Must-reads from across Asia - directly to your inbox
Comments
continue reading