Producer Price Index Puts Inflation Fear Aside
If inflation is rising it is not quite so evident in the wholesale inflation data. The Producer Price Index for March was reported as Flat or 0.0% and the core rate which takes out food and energy came in +0.3%. …
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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
Contact [email protected] for any questions or corrections.
Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. www.247wallst.com.
