PPI Inflation Accelerates To +3.3%, Driven By 'Core Services,' +4.0%, Both The Worst Readings In Nearly 2 Years

Summary

• The December PPI accelerated to an increase of 3.31%, driven largely by services, which accelerated to 4.03%. Both increases were the worst since February 2023.
• “Core” PPI accelerated to 3.55% year-over-year in December, the fastest pace since February 2023, up from 3.47% in the prior month.
• November’s overall PPI reading was revised up to a year-over-year increase of 3%, from 2.98% reported a month ago.

aydinmutlu

2024, the year of sharp acceleration. Services, accounting for two-thirds of PPI, are where inflation is festering and accelerating.

This time, the prior months’ data of the Producer Price Index were revised up by relatively small amounts, unlike the whopper up-revisions