Economy

December 9, 2022

Inflation Remains Fed Despite Energy’s Pullback

November’s producer price index (PPI) came in higher than expected, rising by 0.3% MoM and 7.4% YoY. ðŸ”Ĩ

The culprit this time? Wholesale vegetables…which saw a 38% surge. This caused the overall food index to rise 3.3%, which offset the 3.3% decline in energy costs.

Core PPI doubled the 0.2% MoM estimate at 0.4%, excluding food and energy. While the YoY rise of 6.2% is less than October’s 6.6% reading, inflation remains far too high for the Fed’s liking.

The news sent bond yields, which had been trending lower for a few weeks, higher. The Fed says they’re staying aggressive until inflation comes down meaningfully, and today’s reading was anything but that.

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