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.

Read full article

Stock Forecasts

SPYView SPY chart on TradingView

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.

Related News

Trump rings opening bell at New York Stock Exchange

Dec 12, 2024, 9:32 AM

President-elect Donald Trump on Thursday rang the opening bell at the New York Stock Exchange in the Manhattan borough of New York City.

SPY

Wholesale inflation jumps more than expected in November as price pressures remain sticky

Dec 12, 2024, 9:02 AM

Thursday's wholesale inflation reading follows a string of releases that have shown price increases aren't rapidly falling toward the Fed's 2% target.

SPY

Top Wall Street bull sees possibility of feverish stock rally fading in second half of 2025

Dec 12, 2024, 4:00 AM

Fundstrat head of research Tom Lee sees a roaring rally cooling off in the second part of 2025 as stocks could follow a typical historical pattern following two years of strong gains.

SPY