Jan 15, 2025

Producer Prices Rise 0.2% in December Ahead of CPI Report

Markets reacted positively to a lower-than-expected Producer Price Index (PPI) reading for December.

PPI rose 0.2%, below the 0.4% forecast.
Core PPI remained unchanged at +0.3% from November.
This report sets expectations for the upcoming Consumer Price Index (CPI) release.
Analysts caution against interpreting this as a signal for future rate cuts.
Headline CPI is projected to increase to 2.9% annually from 2.7% in November.
Core CPI is expected to remain stable at 3.3% year-over-year.
The PPI data slightly raised the odds of a 25 basis points interest rate cut to 21.6%.