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Institution: Does the weakness of PPI mean the weakness of CPI? It happens from time to time.
January 14th, Jinshi data, Spectra Markets analyst Brent Donnelly said that the weak PPI does not always mean weak CPI, but it often happens. Recently, it is rare for the US Department of Labor to release PPI data before CPI data in a certain month, but before 2018, this was the norm. Looking back on the history of the past 10 years: when both overall PPI and core PPI are lower than expected - just like the December data just released - in 21% of cases, the monthly CPI is higher than expected. Donnelly found that in this situation, CPI meets expectations 39% of the time, and is lower than expected 39% of the time. This indicates that the December CPI data released this Wednesday is less likely to be higher than the Wall Street's expectations. Economists have been predicting a consumer price pump of 0.3%.