Analysis: Weak PPI does not mean weak CPI, but it happens from time to time

Brent Donnelly, an analyst at Spectra Markets, said that whether weak PPI means weak CPI, although not always, it often happens. Recently, it is somewhat rare for the U.S. Department of Labor to release PPI data before CPI data in a certain month, but before 2018, this was the norm. Looking back at the history of the past 10 years: when both the overall PPI and the core PPI are lower than expected-as the data just released in December-the CPI of that month is higher than expected only 21% of the time. Donnelly found that in this case, 39% of the time the CPI was in line with expectations, and 39% of the time the CPI was lower than expected. This suggests that the December CPI data released on Wednesday is less likely to be higher than Wall Street expects. Economists had previously predicted that consumer prices would rise by 0.3%. (Jinshi)