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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
US
- NY Fed research finds that the pass-through of import prices to domestic PPI more than doubled during the Covid period.
- The pick-up in core goods inflation in the current expansion is the strongest across all expansions since the 1970s. The pick-up in service prices meanwhile is more modest, but has accelerated recently. The pattern is a reversal of the typical inflation dynamics over the last twenty years.
- Against that backdrop, the impact is unsurprisingly larger for the traded sector: a 10% increase in import prices and wages is associated with a 7.4% increase in PPI in 2021, compared to only a 3% increase in 2013-20. Around 70% of the effect flows through the marginal cost channel.
- That compares with an increase from 1.6% in the pre-pandemic period to 3.4% for the non-trade sector.
- More: https://libertystreeteconomics.newyorkfed.org/2022/08/pass-through-of-wages-and-import-prices-has-increased-in-the-post-covid-period/
Source: NY Fed
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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