PPI shows wholesale inflation jumped more than expected amid 'extended and bumpy journey' to Fed's target
Published On Dec 12, 2024, 9:42 AM
The Producer Price Index (PPI) indicates that wholesale inflation rose unexpectedly in November, increasing by 3% year-over-year compared to the 2.4% rise in October, thereby surpassing economists' expectations of 2.6%. Core prices (excluding food and energy) also saw an increase of 3.4% year-over-year, higher than both the prior month and forecasts. This trend reflects ongoing inflationary pressures and suggests that the Federal Reserve may be cautious in further adjusting interest rates, complicating their path towards a 2% inflation target.
Stock Forecasts
SPY
Negative
The continued rise in wholesale prices and core inflation could indicate sustained inflationary pressures in the economy, leading to fewer rate cuts than investors hope for in 2025.
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