BLS reported Producer Price Index and it continues to be stubbornly high.
The Producer Price Index for final demand advanced 0.3 percent in November, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. Final demand prices also rose 0.3 percent in both October and September. (See table A.) On an unadjusted basis, the index for final demand moved up 7.4 percent for the 12 months ended in November. Prices for final demand less foods, energy, and trade services moved up 0.3 percent in November after rising 0.2 percent in October. For the 12 months ended in November, the index for final demand less foods, energy, and trade services increased 4.9 percent.
Any relief gained from dropping energy prices were replaced by higher prices for other goods and services.
The Consumer Price Index will be released on Tuesday and the Federal Reserve will meet on Wednesday to set new interest rate policy. We’ll see if these latest stats lead to a surprise on Wednesday. Stay tuned, stay profitable and stay solvent….