What is more interesting about this report is that oil prices have come down even since the end of this report and that signals yet another drop in the wholesale inflation rate. Today’s wholesale data should temper the real consumer inflation expectations in the consumer prices due shortly as well.
There is often a two or three month lag to wholesale inflation passing through to the retail level and the current drop in energy prices implies that the consumer is safe from inflation at least going into the summer. Even if the consumer price index ticks up it may be considered a blip now.
JON C. OGG