Headline Number: 1.1% increase month-over-month,
Expectations: Consensus for a 0.8% month-over-month increase.
Analysis: Last month, the PPI came in slightly higher than expected, with a 0.8% month-over-month increase.
It’s not surprising that the PPI is going higher, as we’ve seen prices and price expectations rise in many of the local Fed indices. The rise in price for commodities is driving this, but many of this prices have yet to be passed on to the consumer.
Core PPI, excluding food and energy, was also higher, up 0.2% month-over-month, a great gain than was anticipated.