US PPI inflation probably slumped to only 0.3% in Jan: Capital Economics

Quotes from Capital Economics:

- Our forecast is that the annual rate of PPI inflation (13.30 GMT) slumped to only 0.3% in January. The 18% m/m decline in gasoline prices points to a 9% m/m drop in the PPI energy component. 

- The drop might even prove to be a little bigger, since natural gas prices also fell back last month. Excluding food and energy prices, we think core PPI inflation was unchanged at 2.1%.