November PPI Of 0.8% Comes In Hotter Than Expected

Headline number: Up 0.8%

Expectations: Consensus was for 0.7% month-over-month growth.

Analysis: While only slightly beating expectations, PPI for November shows that prices are rising for producers. In October, PPI data came in lower than expected, at 0.4% month-over-month growth. A low number would indicate that disinflation, at least on the producer end, may still be a real threat.

The jump of 0.3%, month-over-month, in the PPI without food and energy is a big move upward. The month previous, that stat fell 0.6%.

Whether these higher prices are passed onto consumers is still unknown. Tomorrow’s CPI data should give us a clue.

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