The meter of wholesale prices increased more than expected in January, although some details of the report indicated that the inflation pressure of the pipelines soothes.
. Manufacturer's price indicatorWhat measures, what producers receive for their goods and services, increased by 0.4% corrected seasonally compared to 0.3% respect, Bureau of Labor Statistics said on Thursday.
Turning off food and energy, the basic PPI increased by 0.3%, according to the forecast.
Futures on the stock exchange He moved higher after the release, while the treasure's profitability was rapidly lower, despite the higher than the expected number of headers. Wall Street strategists quoted the details of the report, which suggested a slightly mild picture of inflation.
In particular, some costs related to healthcare showed alleviation – for example, medical care fell by 0.5%. In addition, national airports fell by 0.3%, and the prices of brokerage services were 2.2%.
Over the past year, PPI ALL-EITEMS increased by 3.5%, significantly ahead of the central bank's goal. Futures prices indicate that the market does not expect the FED to lower its reference interest rate to October.
While the release of manufacturers and consumers price indicators are widely cited inflation indicators, they are not the main ones that the FED uses. Rather, the central bank focuses on the personal indicator of consumer prices, which the Trade Department will publish later in February. PPI and CPI editions provide this means.
Fed chair Jerome Powell On Wednesday, he recorded more Fed tailored PCE, while informing House Financial Services Committee “We're not there yet” He has cited “great progress” about inflation.
According to Citigroup, data collection, the basic measure of PCE probably shows an increase of 0.22%, compared to 0.45% in December. This would reduce the annual inflation rate to 2.5%, said the company.
PPI release takes place the day after the BLS reports that Consumer price indicator It increased by 0.5% per month, which means an annual inflation rate of 3% and significantly out of reach of 2% of the long -term Fed target.
Together, reports withdraw expectations regarding the reduction of the rate to the second half of the year, although inflationary data may be unstable, and perspectives may change depending on what the following months show.
“The increase in wholesale prices arrived slightly higher than expected in January, and the reading in December was corrected up,” said Elizabeth Renter, a senior economist from Personal Finance Site Nerdwallet. “In other words, inflation at the manufacturer's level remains high, and one of the problems is that this inflation can be finally transferred to consumers.”
Changes in the December numbers also complicated the image of inflation, with the reinforcement currently 0.5%, compared to the previously reported increase of 0.2%.
In January, producers prices for services increased by 0.3%, while the goods increased by 0.6%. Service prices were carried out by a 5.7% jump in the Traveler accommodation category, which according to BLS accounts for over a third of profit.
On the side of the goods, 10.4% of the fuel fuel costs were an important factor. PPI data also reflected a huge leap of egg prices when farmers destroy millions of chickens to prevent the spread of bird flu. Eggs for fresh use exploded 44% higher in a month and increased by 186.4% than a year ago.
In other economic messages, the Department of Work announced that Initial applications regarding the claims of unemployment Not much changed in the week ended on February 8. The claims amounted to 213,000, which is a decrease of 7,000 from the previous period and similar to 215,000 estimates. The continued claims, which last a week behind, fell to 1.85 million, which is a decrease by 36,000.