1624 ET - At times there has been some correlation between a soft PPI reading and a soft CPI reading for the same month. But today's weaker-than-expected PPI numbers may not translate into a cool CPI reading tomorrow, economist Stephen Stanley of Santander says. That's especially true of the core readings, which exclude volatile food and energy prices, he says. Food and energy readings across the two inflation indicators show a decent correlation, but other categories of goods are less tied together. "My CPI forecast hinges on my PPI forecast only in the food and energy component, not within the core," Stanley says. (matt.grossman@wsj.com; @mattgrossman)
(END) Dow Jones Newswires
January 14, 2025 16:24 ET (21:24 GMT)
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