US PPI Advances 0.8% to Beat Estimates, Reinforces Widespread Inflationary Pressures
US Producer Price Index (PPI) up 0.8% for November vs 0.5% Expectation
The index for final demand services rose 0.7 percent in November, the eleventh consecutive advance, with prices for final demand goods increasing by 1.2%. These factors, when seasonally adjusted, resulted in a producer price index increase of 0.8%. The increase beat estimates of an increase of just 0.5% and continues to reinforce the more structural nature of inflation as opposed to the ‘transitory’ originally dubbed by Federal Reserve Bank Chairman Jerome Powell.
The year on year figure also beat estimates of 9.2% to come in at 9.6%.
US Producer Price Index (PPI) for November (year on year)
Source; Refinitiv, US Bureau of Labor Statistics
While the PPI figure is less likely to attract the same level of attention as other measures of inflation like CPI or the Fed’s preferred personal consumption expenditure (PCE), the data point certainly comes under closer inspection due to current widespread, persistent, rising inflation. Just last week CPI printed at a 30-year high of 6.9% with core inflation coming in at 4.9%
For more real-time economic data prints head over to DailyFX’s economic calendar
--- Written by Richard Snow for DailyFX.com
Contact and follow Richard on Twitter: @RichardSnowFX
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