Goldman Sachs: U.S. March PPI Cooled Unexpectedly, but PCE-Related Components Were Stronger Than Expected

Golden Ten Data, April 15 – According to a research report by Goldman Sachs, the US released data last night showing that the March PPI, core PPI (excluding food and energy), and PPI excluding food, energy, and trade services were all lower than expected. However, the PPI components related to the PCE performed better than the bank's previous assumptions. Based on the details of the PPI and CPI reports, Goldman Sachs estimates that the US core PCE price index rose by 0.27% in March (compared to their pre-PPI report expectation of 0.22%), corresponding to a year-on-year increase of 3.15%. In addition, the bank expects the overall PCE price index to rise by 0.64% in March, up 3.45% year-on-year.