US Producer Prices Grow At Slowest Pace In Over 3 Years

Following yesterday's bigger than expected rise in consumer prices (driven by surging services costs), US producer prices were expected to accelerate after slowing dramatically in recent months, but it didn't with core PPI dropping 0.2% MoM and headline PPI holding at just 1.1% YoY - the lowest since September 2016.

Source: Bloomberg

Core PPI fell 0.2% MoM - dispelling more of the narrative that President Trump's tariff threats will crush the average American with cost increases...

Source: Bloomberg

Notably, while Consumer Services costs surged in November, Producer Services costs slid 0.3% (with Trade -0.6%).