US – Jun Producer Price Index
12/07/2018 10:11 am MYT
T +
T -

In Jun, the seasonally adjusted producer price index (PPI) for final demand rose by 0.3% from May – see table 1. Excluding foods, energy and trade prices, the core PPI also increased by 0.3%. On a year-on-year basis, the headline PPI rose by 3.4%, its highest level since Nov 2011, while its core PPI rose by 2.7% – see figure 1. Inflationary pressures at the producer level were higher in 2Q 2018 when compared with 1Q 2018 and the same period a year ago.


The increasing cost of transportation amidst strong demand, high energy prices, and rising labour expenses is likely to see the PPI trending upward in the months ahead.



Note from Publisher
The much-awaited talk between president Xi Jinping and Donald Trump at the G-20 Summit in Buenos Aires ended with a tariff truce between the two economic giants. The US stock markets rallied in response. However, the rally was short-lived when the markets realised that there are still many uncertainties in the trade conflict between the two countries. In addition, a section of the US yield curve became inverted for the first time in more than a decade, signaling a potential recession in the US economy.

i Capital has advised subscribers since last year to watch the US yield curve carefully and it has also asked a number times whether the US economy is about to enter into a recession. Although chairman Powell has caved in to Trump’s crude bullying, the threat of the US yield curve fully inverting and a 2019 US recession has not subsided.

Meanwhile, has soft launched a new interactive chart section. Subscribers are encouraged to try out this new exciting feature in Subscribers can conduct their own economic and technical analyses by viewing the charts of their chosen economic indicators or stocks, according to their preferred chart types and time periods. They can also compare multiple economic indicators or stocks across countries and more. Do try it out and let us know what you think.
Stock Selections
Corporate News