**MNI: 5 Things We Learned From The November PPI Data>

By Kevin Kastner, Holly Stokes and Sara Haire

     WASHINGTON (MNI) - The following are the key points from the 

Producer Price Index data for November released by the Labor Department 

Tuesday: 

     - The November PPI data, which were stronger-than-expected, 

providing support to the likely FOMC rate hike this week and for those 

that see 3-4 rate hikes next year. 

     - November PPI +0.4% vs +0.3% expected, continuing the string of 

underestimates that were seen in six of the last 10 November releases, 

including the most recent two years and in October 2017. The gain was 

led by +4.6% in energy prices (gasoline +15.8%) and +0.3% in foods 

prices, while trade services -0.3%. 

     - PPI ex. food and energy +0.3% vs +0.2% expected, while PPI ex. 

food, energy, and trade services +0.4%. This also follows underestimates 

in the most recent two November reports and in October, maintaining the 

string of upside surprises. 

     - Year/year prices show acceleration from October. Overall PPI now 

+3.1% y/y, highest since January 2012, ex food and energy +2.4% y/y, ex 

food, energy and trade services sees the highest on record of +2.4% y/y. 

     - Within the core, there were solid gains for passenger cars, light 

motor trucks. Trade services were held back by margins on fuels and 

sporting goods. 

     ** MNI Washington Bureau: 202-371-2121 ** 

[TOPICS: MAUDS$,M$U$$$,MAUDR$]