Producer Price Index (PPI) inflation data for May, to be released on Wednesday, June 14, will set the stage for the highly anticipated Federal Reserve meeting where interest rates will be determined.
The market’s expectations of the Fed’s rate hikes coming to an end were solidified after Tuesday’s CPI report revealed a lower-than-expected decline in consumer inflation.
The upcoming producer inflation data could provide additional evidence of a disinflationary trend, potentially swaying Fed members to reconsider the need for future interest rate increases.
Producer Price Inflation Preview: What Do Economists Expect?
Economists forecast that producer inflation in the U.S. could decrease to as low as 1.5% in May, down from April’s 2.3%, marking the lowest level since January 2021. This would extend the streak of 12 consecutive declines in producer price inflation.
Producer prices are also projected to fall significantly below their 10-year average of 2.7%.
Monthly estimates show a 0.1% reduction in producer prices, the second negative reading in 2023.
Core PPI, excluding energy and food, is predicted to fall from 3.2% in April to 2.9% in May, ...Full story available on Benzinga.com
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