Producer prices did fall in November, but not as much as economists were expecting, according to the latest data from the Bureau of Labor Statistics
- Y-O-Y: The Producer Price Index for final demand was 7.4% for the 12 months ending in November, this is down from the 8.1% reported in October but higher than the 7.2% economists were projecting.
- M-O-M: Producer prices were up 0.3% from October which is the same increase we have seen the last three months but was higher than the 0.2% economists were projecting.
The Core. The Core index was worse than the total index with the year-over-year prices up 6.2% in November, this is down from the 6.7% reported in October but higher than economist projections of 5.9%.
- The month-over-month data wasn’t any better with core prices up 0.4% from last month and double economist projections of 0.2%.
BOTTOM LINE: Inflation is slowing, but with producer prices higher than expected it’s not looking good for the next CPI report.