MNI DATA ANALYSIS: US PPI Rises 0.1%; Up 0.3% Ex Food, Energy>

--November PPI Ex. Food, Energy, Trade +0.3%; Trade Services +0.3%

--PPI +2.5% Y/Y Vs +2.9% In October; Ex Food, Energy +2.7% Vs +2.6%

By Kevin Kastner, Harrison Clarke, and Shikha Dave

     WASHINGTON (MNI) - Final demand PPI was up 0.1% in November, and 

PPI outside of food and energy was up 0.3%, both above expectations, 

and excluding trade services as well, PPI was up 0.3%, data released 

by the Bureau of Labor Statistics Tuesday showed. 

     The year/year rate of inflation for final demand PPI was 2.5%, 

down from 2.9% in October, while PPI ex food and energy was up 2.7% 

year/year, above 2.6% in the previous month. However, the year/year 

rate for prices also excluding the volatile trade services category was 

2.8%, unchanged from the 2.8% rise in October. 

     The personal consumption price measure in the data, which some 

analysts use as a preview measure for the CPI and PCE price indexes, was 

down 0.1% overall but up 0.4% ex. food and energy, and was up 0.3% also 

excluding trade services, suggesting upside risk for the core PCE 

inflation data. 

--ENERGY PRICES DOWN, FOODS UP  

     Energy prices fell 5.0% in November after a 2.7% gain in October, 

led in November by a 27.9% decline in liquefied petroleum gas and a 

14.0% decline in gasoline, partially offset by a 3.3% gain in 

residential fuel. 

     Food prices were up 1.3% on gains in most categories. 

     Trade services prices rose 0.3% in the month after a 1.6% increase 

in October, while the PPI core rate the BLS prefers, which excludes the 

change in trade services as well as food and energy, was also up 0.3% in 

November. 

     Within the core, there were generally upward movements in a number 

of categories, especially a record 4.7% gain in cell phones and wireless 

services. Passenger car prices fell 0.1%, while light truck prices rose 

0.1%. However, overall final demand services prices rose 0.3%. 

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

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