US: PPI likely advanced for a second straight month in October - RBS

Research Team at RBS, suggests that the US Producer Price Index (PPI) likely advanced for a second straight month in October, perhaps by another 0.3%.

Key Quotes

“The jump in the headline PPI in September was supported by broad-based increases in food (0.5%), energy (2.5%) and the core (excluding food, energy and trade services, +0.3%). In contrast, trade services (-0.4%) fell for a third straight month in September.  In October, food prices could have been little changed, while energy prices could have jumped by as much as 4.5% (owing to higher prices for heating oil, diesel fuel, liquefied petroleum gas and gasoline). Trade services could have also depicted a slight rebound last month. Meanwhile, the core measure could have increased 0.1%, as prices for core goods and services excluding trade may have moderated a bit last month.”