US PPI data for May 2018
The US PPI data from May came out Higher than expected
- PPI MoM 0.5% versus the 0.3% expected. Primark came in at 0.1%
- EX food and energy 0.3% versus 0.2%
- Ex food, energy, trade, 0.1% versus 0.2%
- PPI YoY 3.1% versus 2.8%. Prior month 2.3%
- PPI Ex food and energy YoY 2.4% versus 2.3%
- Ex food, energy, trade 2.60% versus 2.5% last month
The numbers are hotter than expected and could be reflective of a pipeline of price increases for consumers down the road. The FOMC is expected to increase rates by 0.25% to 1.75%-2.0% range at 1 PM ET today.
US yields are a bit higher after the news with the two-year yield of 1.4 bps at 2.553% (up about 1 bp from earlier levels).
The USDJPY is only up about 5 or so pips. So not much action in the forex market.
