September UK retail sales slide past forecasts, add to BOE's rate hike dilemma
UK retail sales in September dropped 0.4%, more than the 0.1% forecast, complicating the BOE rate hike path.
US September PPI rose 6.3% year over year, above the 5.3% expected.
Each month, the US Bureau of Labor Statistics releases the Producer Price Index, which measures how the selling prices received by domestic producers move on average. The CPI follows inflation from the consumer's side of the till, while the PPI takes the seller's angle, recording wholesale and business prices before those costs reach households.
The headline number is the final demand index, introduced by BLS in 2014 as the successor to the older finished goods measure. The index spans goods, services and construction sold for personal consumption, capital investment, government and export. Services account for roughly two-thirds of the index, so the PPI is much more than a factory-gate indicator.
Sharp month-to-month swings in food and energy prices are the reason markets keep their focus on core readings. One of those core readings leaves out food and energy. A tighter ex-food, energy and trade measure goes further and also excludes trade services. Trade services follow the movement of retailer and wholesaler margins, numbers that can be unstable and are not always a good sign of fundamental cost pressures.
The PPI has long been treated as a pipeline gauge, on the premise that cost increases at the producer level eventually reach consumers. In today's markets, the report's main influence comes from the help it offers in forecasting the Fed's favored inflation measure, the core PCE price index. Some PPI inputs flow straight into PCE, such as portfolio management fees, airfares, and physician and hospital services. Before core PCE is published, economists use the CPI and PPI together to estimate it, so an unexpected result in those PPI categories can alter Fed pricing even if the overall number looks mild.
Share to
Disclaimer: this article comes from third-party media and is provided for reference only. It does not constitute investment advice. Crypto and other financial products carry significant price volatility risk, so please make your own decisions carefully.
UK retail sales in September dropped 0.4%, more than the 0.1% forecast, complicating the BOE rate hike path.
September retail sales are expected to dip 0.1%, with traders pricing in a near-certain November BOE rate hike and 45% odds for December.
Japan's core inflation rose above the BOJ's 2% target for the first time in nine months, strengthening the case for a December rate hike as bitcoin trades…
Japan's underlying inflation hit 2.4% in September, shifting market focus from the timing of the next BoJ hike to the peak rate.