PRODUCER PRICE INDEX
The producer price index (PPI) for final demand fell 0.1% in March, and it is up 3.3% annualized. The weakness in March can be attributed to energy, which dropped 2.9%; specifically, gasoline was down 8.3%. Excluding food and energy, the final demand goods PPI was up 0.4%. Inflation is moving toward the Federal Reserve’s target, but the PPI decline in March is a reminder that there will be some bumps along the way. The reduced slack in the economy is putting upward pressure on inflation and some Federal Reserve officials have expressed desire to raise rates again in order to stay ahead of any inflation.
The information herein was obtained from various sources believed to be accurate; however, Forté Capital does not guarantee its accuracy or completeness. This report was prepared for general information purposes only. Neither the information nor any opinion expressed constitutes an offer to buy or sell any securities, options, or futures contracts. Forté Capital’s Proprietary Market Risk Barometer is a summary of 30 indicators and is copyrighted by Forté Capital LLC. For further information, visit www.fortecaptial.com, send a message to info@forte-capital.com, or call 866-586-8100.