PPI shows wholesale inflation increased less than expected in December
Published On Jan 14, 2025, 12:52 PM
The Producer Price Index (PPI) for December showed a smaller increase than expected, with wholesale prices rising 3.3% year-over-year, which is up from 3.0% in November, but below the projected 3.5%. On a monthly basis, there was only a 0.2% increase, compared to the expected 0.4%. Core prices, excluding food and energy, rose 3.5% year-over-year, above November's figures but still below expectations. This report suggests inflation is not falling as rapidly as hoped, which could affect Federal Reserve interest rate strategies moving forward.
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SPY
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The lower-than-expected PPI suggests that inflationary pressures may be easing, which could lead the Federal Reserve to pause further rate hikes or consider cuts in the future if inflation continues to decelerate. This could have positive implications for the stock market as interest rates could stabilize or decline.
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