Producer prices: what's the pipeline saying?

FTC Community TeamStaff97 views

UK factory gate inflation rose to 3.7% with refined petroleum prices up 49% (report), and US producer prices tell a similar energy story (report).

Producer prices: what's the pipeline saying? — pip movement diagram
How a pip moves the exchange rate

What's your read?

  • how producer prices feed your CPI expectations
  • the energy component's staying power
  • the currency reactions you expect
Producer prices: what's the pipeline saying? — risk-reward diagram
A risk-reward ratio of 1 to 2

Background: CPI explained for the pipeline link.

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