Analysts saw solid November U.S. PPI gains
Analysts saw solid November U.S. PPI gains of 0.4% for the headline and 0.3% for the core that extended big 0.4% headline and core increases in both September and October. The small upside core price surprise reflected a firm 0.3% rise in goods prices excluding food and energy that left a solid 1.0% goods price increase, alongside a expected 4.6% energy price surge and a 0.3% food price rise. Analysts saw a restrained 0.2% service price increase after big gains of 0.5% in October and 0.4% in September. The hurricane lift for prices should start to unwind in December, with an estimated 0.1% PPI headline drop, a 1% gasoline price drop, and a 0.2% core price gain. The y/y PPI rise should slip to 2.9% from 3.1% in November, which broke the 3-handle for the first time since January of 2012, versus 2.8% in October. The y/y core PPI rise should climb to 2.5% in December from 2.4% in both October and November. Note that on the old SOP basis analysts saw a 1.4% headline PPI surge, after gains of 0.2% in October, 0.8% in September and 0.5% in August.