DATA REACT: HFE’s Ian Shepherdson on PPI – “Overall, core PPI inflation
has levelled off at about 1% in recent months, but we think this is
temporary; the downward pressure from the lagged effect of the plunge
in materials prices a year ago, coupled with the sharp drop in unit
labor costs in manufacturing, means we still expect core PPI to drop
below zero on a y/y basis before rebounding later in H2.”