In September, producer prices fell below expectations against a background of almost no inflation - based on AMarkets.
Producer prices for domestically produced goods declined by 0.5% in September against August - this is indicated by data recently published producer price index (PPI). The analysts were expecting much smaller fall - by 0.2%. So far this year slump in prices was 1.1% - a much higher than expected at 0.8%. September - 8 th consecutive month of decline in prices. The biggest drop in the index subcomponents showed energy prices (5.9%) and food (0.8%).
If we exclude the impact of volatile food prices and energy raw materials, the dynamics of the index was 0.3% in September versus August, and 0.8% when compared to the same period last year. Producer prices - a common measure of aggregate price inflation in the economy at the level of production (not consumption).
This is another confirmation that the Fed is unlikely to raise rates in 2015 or 2016. Rather, all of us waiting for another QE.