US November PPI: Broad Gains - Wells Fargo

The US Producer Price Index (PPI) for final demand rose 0.4% in November as energy prices moved up again, explained analysts from Wells Fargo. According to them, ex-food, energy and trade services,  the PPI also points to inflation picking up. 

Key Quotes: 

“Producer prices rose more than expected in November with the index rising 0.4 percent for a third straight month. The PPI for final demand is now up more than 3 percent over the past year.”

“Goods prices led the charge. While energy prices increased 4.6 percent, food and core goods prices both rose 0.3 percent.”

“The services index was up 0.2 percent despite a pullback in the trade services component, which is measured as margins.”

“Since methodology changes in 2014, the PPI has diverged more noticeably from the more closely watched CPI and PCE measures. Nevertheless, the pickup over the year will be welcomed by the Fed as an indication that inflation is gradually moving up.”

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these securities. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Forex involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.