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November Producer Price index

November Producer Price Index

The Producer Price Index for final demand increased 0.8 percent in November, seasonally adjusted, this is usually a forecast of consumer price increases coming in the future. As outlined by Axios:

An index of wholesale prices rose 9.6% compared to a year ago, its largest annual gain since the government began calculating in 2010. • The Producer Price Index (PPI) started off the year showing 12-month price growth of 1.6% and has moved up steadily all year. Why it matters: The PPI is a key leading indicator for the prices that consumers eventually pay.
• “[December] should be the peak,” wrote Pantheon Macroeconomics in a research note. “A combination of favorable base effects and smaller month-to-month increases should start to drive down the year-over-year rate.”
State of play: On the whole, companies passed on enough of their input cost increases to customers during Q3 to preserve profit margins. • Watch for whether margins continue to hold up in Q4. The first round of earnings start rolling in next month.

Axios Markets
By Kate Marino ·Dec 15, 2021