US April PPI +2.4% vs +2.5% expected

• Prior was +2.7%
• PPI -0.5% m/m vs +0.2% expected
• Ex food and energy +3.1% y/y vs +3.1% expected
• Ex food and energy -0.4% m/m vs +0.3% expected
• Ex food, energy and trade +2.9% vs +3.4% prior
• Ex food, energy and trade -0.1% vs +0.1% prior

Before today’s data slate, the market was pricing in 74 bps in Fed easing in the year ahead and we now see about 76 bps.

This is good news on inflation pressures.

This article was written by Adam Button at www.forexlive.com.