UK: Guardian: No Direct Challenge To PM From Streeting Today

Our initial look at PPI details suggests we could see similar to slightly higher core PCE estimates vs those centered around 0.22/0.23% M/M (range 0.19-0.27) seen after CPI. We’ll update as we see new analyst estimates. 

• Our simple proxy for PPI detail contributions to M/M core PCE inflation held at 0.07pps in March after an unrevised 0.07pps in Feb.
• It follows a marginally upward revised 0.15pp (+0.01pp) in Jan, building further on a 0.03pp upward revision last month, and an unrevised 0.05pps in Dec.
• Portfolio management & investment advice at 0.9% M/M may have been on the stronger side considering declines in equity markets in March.
• Whilst just one estimate, Nomura had pencilled in -1.3% M/M but that was part of their core PCE tracking at 0.19% M/M vs a wider range of analysts centered around 0.22/0.23% M/M. The 0.9% M/M increase was worth ~0.02pps to core PCE.
• Of the larger health care categories, heavily weighted hospital inpatient services slowed to 0.06% M/M after a strong 0.57% M/M in Feb, more than offsetting stronger physician services (0.24% after 0.0%) and home health (0.23% after 0.13%).
• A softer net healthcare contribution this month was largely offset by stronger airfares on higher energy prices. 

Chicago Fed advisor and economics professor Christiane Baumeister speaks about oil shocks and monetary policy -- on MNI Policy MainWire now, for more details please contact sales@marketnews.com.

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