US PPI preview - Nomura

Analysts at Nomura take us through a brief preview on what to expect from the upcoming US factory gate prices data.

Key Quotes:

“The annual revisions to the PPI data lowered the December headline PPI (final demand) to 0.2% m-o-m (previously reported as 0.3%) with further backward revisions. In January, firming of energy prices continued to contribute positively to the headline PPI.”

“However, food prices likely remained soft as harvest conditions remained favorable, which may partially offset the positive impact from energy prices. Consensus expects an increase of 0.3% m-o-m in the month for the headline PPI.“

“Excluding volatile components such as food, energy and trade, consensus expects an increase of 0.2% m-o-m in January for the core PPI. Note that the PPI data may affect our forecast for the January CPI report.”