{"id":1507544,"date":"2024-12-12T14:15:00","date_gmt":"2024-12-12T19:15:00","guid":{"rendered":"https:\/\/bugaluu.com\/news\/?p=1507544"},"modified":"2024-12-12T14:15:00","modified_gmt":"2024-12-12T19:15:00","slug":"producer-price-inflation-comes-in-red-hot-in-november","status":"publish","type":"post","link":"https:\/\/bugaluu.com\/news\/producer-price-inflation-comes-in-red-hot-in-november\/1507544\/","title":{"rendered":"Producer Price Inflation Comes In ‘Red Hot’ In November"},"content":{"rendered":"

Producer Price Inflation Comes In ‘Red Hot’ In November<\/span><\/p>\n

\n

Following yesterday’s reported re-ignition in consumer price inflation (despite people seemingly being exuberant that it was ‘as expected’ – we don’t remember The Fed’s mandate being stable prices in line with consensus expectations?), this morning’s producer prices were expected to accelerate further also to +2.6% YoY from +2.4% YoY.<\/p>\n

But it didn’t…<\/p>\n

Headline PPI surged 0.4% MoM (+0.2% MoM exp) – biggest MoM jump since June – which lifted the YoY rise in producer prices to +3.0% – far above expectations and the highest since Feb 2023…<\/strong><\/p>\n

<\/a><\/p>\n

Source: Bloomberg<\/em><\/p>\n

Headline PPI’s big jump was driven by food costs (rising at their fastest since Nov 2022)…<\/p>\n

<\/a><\/p>\n

Source: Bloomberg<\/em><\/p>\n

A quarter of the November rise in prices for final demand goods is attributable to a 54.6-percent jump in the index for chicken eggs.<\/strong><\/p>\n

Prices for fresh and dry vegetables, fresh fruits and melons, processed poultry, non-electronic cigarettes, and residential electric power also increased. In contrast, the index for oilseeds declined 4.7 percent. Prices for diesel fuel and for primary basic organic chemicals also decreased.<\/p>\n

Services costs are accelerating fast on a YoY basis<\/strong> and Energy’s deflationary pressure is evaporating rapidly…<\/p>\n

<\/a><\/p>\n

Source: Bloomberg<\/em><\/p>\n

Not only was much of the PPI report better than expected, the underlying components were too. <\/strong><\/p>\n

The percentage of those rising on an annual basis is at 80%.<\/p>\n

As the chart shows, this is typically consistent with PPI remaining elevated.<\/strong><\/p>\n

<\/a><\/p>\n

Spot the difference (food costs just hit a new record high<\/strong>)…<\/p>\n

<\/a><\/p>\n

Source: Bloomberg<\/em><\/p>\n

Core PPI (ex-food and energy) rose 0.2% MoM as expected but the YoY core PPI jumped dramatically to +3.4% YoY – also the hottest since Feb 2023…<\/p>\n

<\/a><\/p>\n

Source: Bloomberg<\/em><\/p>\n

Given the resurgence in money supply, it should not be a surprise that PPI (and CPI) are on the rise again…<\/p>\n

<\/a><\/p>\n

Source: Bloomberg<\/em><\/p>\n

Does that look like an inflationary backdrop that needs a rate-cut next week?<\/strong><\/p>\n<\/div>\n

Tyler Durden<\/a><\/span>
\nThu, 12\/12\/2024 – 09:15<\/span><\/p>\n

\u200bhttps:\/\/www.zerohedge.com\/markets\/producer-price-inflation-comes-red-hot-november<\/a>\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"

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