US PPI final demand for December 2020
- Prior report
- PPI final demand YoY 0.8% vs. 0.8% estimate. Last month 0.8%
- PPI Ex food and energy 1.2% vs. 1.3% estimate. Last month 1.4%
- PPI ex food, energy and trade YoY 1.1% vs. 0.9% estimate. Last month 0.9%
- PPI final demand MoM, 0.3% vs. 0.4% estimate
- PPI ex food and energy MoM, 0.1% vs. 0.2% estimate
- PPI ex food, energy, and trade 0.4% vs. 0.2% estimate
- Food fell -0.1%, energy increase 5.5%
The PPI data came in mixed overall with the headline number still well below 2% for the YoY. The data is before stimulus checks that started to go out in early January. With the Pres. elect Biden proposing an additional $1400, there may be some creep up in inflation going forward. The Fed is expecting that, but is willing to tolerate inflation over 2%. The inflation data today is still a ways off the 2% level. It combined with the weaker retail sales, suggests that upside price pressures should continue to be in check.
