Mood changes and bloodbaths

<p>Kia ora,</p><p>Welcome to Wednesday’s Economy Watch where we follow the economic events and trends that affect Aotearoa/New Zealand.</p><p>I'm David Chaston and this is the International edition from Interest.co.nz.</p><p>Today we lead with news that in an act of considerable bravery, the leaders of Poland, Czechia and Slovenia have gone to Kyiv for talks with the Ukrainian leader even as Russia is shelling to city.</p><p>Separately, this morning's <a href="https://www.globaldairytrade.info/en/product-results/" target="_blank"><strong>dairy auction</strong></a> has brought a hesitation, albeit one at the top of the range. Overall prices fell -0.9% but stayed within touching distance of its record highs. The dominant WMP volumes fell the most, down -2.1%, but SMP rose +1.6%. This time the exchange rate provided little difference to these results. But these were results lower than <a href="https://www.interest.co.nz/rural-news/114838/after-four-stellar-auctions-impressive-gdt-price-index-gains-wednesdays-may-be" target="_blank"><strong>market expectations</strong></a> where a further but smallish rise was anticipated.</p><p>However, this result is no different to commodity prices generally which made some reversals overnight. </p><p>Last week US <a href="https://tradingeconomics.com/united-states/redbook-index" target="_blank"><strong>retail sales gains</strong></a> eased further on a year-on-year basis, but still with an outsized swelling even if it is on a weak year-ago base. The eating into those gains is now quite noticeable, but the rises are still well above inflation.</p><p>Also easing is the producer price pressure. US <a href="https://www.bls.gov/news.release/ppi.nr0.htm" target="_blank"><strong>PPI</strong></a> not only came in lower than expected, the February growth levels were lower than January.</p><p>But producer price pressure is still very evident in regional factory surveys. The New York one still records high costs, but it also recorded <a href="https://www.newyorkfed.org/medialibrary/media/su