Banca March: In the US, industrial production costs rose slightly more than expected on a monthly basis, limiting the possibility of a 50 b.p. cut by the Fed next week. On a month-on-month basis, producer prices rose by 0.2% in August, one tenth of a percentage point higher than expected and two tenths of a percentage point higher than in July. Similarly, if we exclude the more volatile components such as energy and food, the monthly change was 0.3 compared with the previous 0.2% fall. On the other hand, in year-on-year terms, production costs rose by 2.4%, in line with expectations. It is worth noting that several of the components that are part of the producer price index are also used to construct the Fed’s preferred indicator: the personal consumption deflator.
US production costs rise 2.4% year-on-year, in line with expectations
