US November PPI +2.5% y/y vs +2.5% expected

US November 2018 PPI data

• Prior was +2.9% y/y

• Ex food and energy 2.7% vs 2.5% expected

• Prior ex food and energy 2.6%

• PPI ex food energy and trade 2.8% vs 2.8% prior

Month-over-month readings:

• PPI +0.1% vs 0.0% exp (0.6% prior)

• Ex food and energy +0.3% vs +0.1% exp

• Ex food, energy and trade +0.3% vs +0.2% expected

This report isn't going to make it any easier for the Fed to shift to neutral after hiking later this month.

"Most of the November advance in prices for final demand services can be traced to margins for fuels and lubricants retailing, which jumped 25.9 percent," the report says. "The indexes for health, beauty, and optical goods retailing; cellular phone and other wireless telecommunications services; airline passenger services; food wholesaling; and truck transportation of freight also moved higher."

Tariffs don't appear to be a problem. "The index for final demand goods moved down 0.4% in November, the largest decrease since falling 0.5% in May 2017."