U.S. producer prices rose more slowly than expected in October despite a rebound in food and energy costs, according to a report on Tuesday. Bruce Kasman, chief U.S. economist at JPMorgan Chase, shared his view.
“It was a weak report,” Kasman told CNBC.
“We have to put it in a context of three previous months that were quite strong...But it’s a 1-month disappointment around a solid trend.”
Kasman is waiting to see a stabilization in the labor market and a return to growth in capital spending.
“We have some pressure from food and energy, but when I look at the weakness in the labor market, the slack in the housing market, medical care in this report were very weak as well,” he said. “I think the general thrust is for overall core inflation to be drifting slightly lower over time.”
- Watch Kasman's Previous Appearance on CNBC (Oct. 16, 2009)
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No immediate information was available for Kasman or his firm.