Big data day from the US on Wednesday - producer inflation the focus
Wednesday in the US brings PPI for August, due at 1230GMT. (Before this its mortgage applications data for September 8 week, due at 1100GMT, prior 3.3%)
For the headline, PPI Final Demand for August
- expected 0.3% m/m, prior -0.1%
- expected 2.5% y/y, prior 1.9%
And ... PPI Ex Food and Energy
- expected 0.2% m/m, prior -0.1%
- expected 2.1% y/y, prior 1.8%
Deutsche Bank have a good preview note out:
Headline PPI (+0.3% forecast vs. -0.1% previously) will likely get a boost from gasoline, while core producer prices (+0.2% vs. -0.1%) should rise more modestly.
- As always we will pay close attention to the health care industries component within the PPI as this is used to estimate health care services in the core PCE deflator - the Fed's preferred inflation metric.
- Recall that health care has the largest weighting within the core PCE deflator
Oh ... and keeping the head up for Thursday, consumer level inflation data released.