October PPI Of 0.4% Is Shockingly Cool

The Number:

Quite surprising. Headline PPI of 0.4% is below, expectations, and core at -0.6% is really big. Very odd, considering all the talk about prices rising at the producer level.

Stocks are heading for a lower open, though not dramatically so.

You can find more here.

Background: Everybody knows that wholesale/commodity pricing has been hot lately, and analysts are expecting a 0.8% headline number. That would be up significantly up from 0.4% last month. Core PPI is only expected to come in at 0.1%.

What will be really interesting is CPI tomorrow, to get a sense of how badly end pricing is failing to keep up with what producers are paying, thus devastating margins.

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.