US inflation: Producer prices and oil come under scrutiny – UBS

Higher prices, led by oil, are expected in the US producer price inflation data for October, according to UBS economist Paul Donovan. Unlike consumer price indices, these data directly capture diesel prices.

Producer prices come into focus for policy signals

"Today’s release of US October producer price inflation is expected to show higher prices, with oil leading the way."

"Diesel prices are directly included in this data (they are not in US consumer price numbers)."

"However, there will also be examination of the details to see if there is better evidence of tariff inflation effects fading from the calculation."

TMGM Analysis: Financial Market News, Economic Calendar & Market Insights

"New York Fed President Williams sounded hawkish about inflation overnight."

"It is not clear if this is part of a campaign to make the Federal Reserve sound vigilant on inflation, or whether there is a genuine desire to push the non-oil US economy into recession to offset oil prices."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Learn more.)