Dollars and Jens
Tuesday, October 17, 2006
Producer prices dropped 1.3% last month, but producer prices excluding food and energy rose 0.6%, but producer prices excluding food and energy and cars ... well, this report's a little hard to make out. Makes me all the happier with the trimmed-mean PCE, actually.

Year-over-year, incidentally, the PPI is now up 0.9%; a month ago, that was 3.7%. Part of this was due to the big recent energy price drop, but it came at the same time as the Katrina-related jump 12 months earlier rolled off.

So, how is inflation? Well, the CPI comes out tomorrow. It's worth noting, though, that bonds blipped up (yields down), and while they eased back near to unchanged by the end of the day, TIPS had dropped, bringing the inflation spread to a new cycle low. So expectations for CPI are still contained until at least tomorrow morning.

(0) comments
Post a Comment

Powered by Blogger