US PPI suggests inflation pressures remain benign - Wells Fargo

According to analysts from Wells Fargo, today’s unexpectedly decline in the March PPI index shows that inflation pressures remain benign.

Key Quotes:

“Due to the first monthly decline in services prices since October 2015, the Producer Price Index (PPI) for final demand unexpectedly fell 0.1 percent in March. Core PPI-final demand also slipped by the same amount.”

“Anticipated to rise on the strength of higher energy prices, the index for PPI-final demand missed expectations for the month of March.

“Further back in the production pipeline, prices were mixed. Processed goods for intermediate demand, down 0.2 percent, extended its monthly decline to nine straight months, while unprocessed goods, up 2.5 percent, snapped an eight-month down streak.

“The soft performances from the March import and producer price reports suggest inflation pressures remain benign.”