Benign PPI Print Includes Signs of Sticky Consumer Inflation -- Market Talk

Dow Jones03-13

0921 ET - February producer price index was benign on the surface, but some details point to sticky consumer prices, Capital Economics' Thomas Ryan writes. He points to hospital PPI and airfares showing worse results than expected. He now sees the 12-month core PCE gauge, due later this month, accelerating to 2.8% from 2.7%, inching away from the Fed's 2% target. Ryan says the three-month annualized rate "would jump even more sharply to 3.4%, from 2.4%." He expects pressure from tariffs to eventually be passed on to consumers. Overall, February PPI was flat, while the ex-food and energy reading deflated by 0.1%. (paulo.trevisani@wsj.com; @ptrevisani)

 

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Capital Economics' Thomas Ryan sees the 12-month core PCE gauge, due later this month, accelerating to 2.8%. It was 2.6% in January. "Benign PPI Print Includes Signs of Sticky Consumer Inflation -- Market Talk," at 9:21 a.m. ET incorrectly said he sees the 12-month core PCE gauge accelerating to 2.8% from 2.7%.

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March 13, 2025 09:55 ET (13:55 GMT)

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