FXStreet (Córdoba) - Sam Bullard and Sarah House, economists at Wells Fargo, point out that today’s Producer Price Index data shows that inflation remains a hurdle to the Fed’s liftoff.
Key Quotes:
“Led by energy, headline producer prices fell a greater-than-expected 0.5 percent last month. Core producer prices also fell on the month, reflecting the broad based weakness of the September report.”
“Marking the first monthly decline since April, PPI-final demand fell more-than-expected in September as weakness was pervasive throughout the report. Prices for final demand goods fell 1.2 percent last month, with lower energy prices accounting for over 80 percent of the decline.”
“Consistent with last week’s import price performance, today’s producer price report continues to reflect a benign inflation environment. With expectations of a similar performance out of CPI, low inflation remains a hurdle to the Fed.”
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