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.

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