The general profile of consumer spending is still strong. The report shouldn't be enough to change expectations of the Fed tightening.

I don't think this is a material change, but anyone following consensus forecasts would have already known Carter's expectations were on the high side.

Expectations are at absolute rock-bottom levels. So this is huge. If they actually achieve it, it does change things.

The data shows an urgent need to strengthen policies at all levels of government and curtail pesticide use.

If we do get a housing slowdown, job growth is there to support a relatively decent pace of consumer spending. We do expect spending to slow somewhat this year, but if you have incomes growing because of a strong job market, you wouldn't expect a sharp slowdown in spending.

On balance, the PPI report was positive. It doesn't show a further rise in inflation.