Analysts at TD Securities suggest that the US PPI inflation is expected to come in flat on a monthly basis in June, bringing the annual measure lower to 1.6% from 1.8% y/y in May.
“Core PPI inflation is projected to print 0.2% m/m and 2.1% y/y. We will look for the details that feed into the PCE deflator (portfolio mgmt. fees and airfares, in particular) to get a better indication about core PCE inflation for June. Reported June CPI data is already hinting at a firm expansion for the month.”