Producer prices are expected to have risen 0.5% in December
following a 0.1% decline in November, according to Royal Bank of
Canada (RY, RY.TO). It says the increase mainly reflects
indications of higher gasoline and other energy prices in the month
after widespread declines in November. This is expected to send the
energy component up 1.8% in December following a 0.4% decline in
November. Additional upward pressure is expected from food prices
which are forecast to rise 0.3% after an unexpectedly benign flat
reading in November, RBC says.
RBC adds remaining slack in the economy is expected to keep core
price increases moderate rising 0.1% in December to match the pace
of increase in November. The solid monthly increase in the headline
index will send the December year-over-year rate up to 1.2% from
0.7% in November. The annual increase in core prices is expected to
remain unchanged at 1.3%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.
Copyright (C) 2014 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.