PPI tumbled to -0.5% in October (1.3% YoY), the biggest drop since pandemic era April 2020. Core PPI was unchanged MoM and rose 2.4% YoY.
Commodity price weakness was the main culprit, with gasoline’s 15.3% plunge leading the way. The print isn’t all rainbows and unicorns. A slump in PPI could also be interpreted as a sign of economic slowdown and the loss of pricing power. Stay tuned…
Futures have given up much of their overnight ramp, but are still up as we approach the open. As contrary as it might sound, the market is due for a pullback in order to backtest some of its recent gains.
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