REPEAT: MNI DATA ANALYSIS: Nov PPI +0.4%, Ex Food, Energy +0.3%>

Repeats Story Initially Transmitted at 13:30 GMT Dec 12/08:30 EST Dec 12

--PPI Ex. Food, Energy, Trade +0.4%; Trade Services -0.3%

--PPI +3.1% Y/Y Vs +2.8% In October, High Since January 2012

--PPI Y/Y Ex Food, Energy Unch At +2.4%, Ex. Food, Energy, Trade +2.4%

By Kevin Kastner, Sara Haire and Holly Stokes

     WASHINGTON (MNI) - Final demand PPI rose 0.4% in November, above 

the 0.3% gain expected, and was up 0.3% excluding food and energy 

prices, above the 0.2% expected, adding fuel to the FOMC discussion, 

data released by the Bureau of Labor Statistics Tuesday showed. 

     An analysis of MNI survey data showed a tendency by participants to 

underestimate PPI growth in November, having missed to the low side in 

six of the last 10 years and each of the last two years. 

     Energy prices were up 4.6% in the month after a flat October 

reading, with a 15.8% jump in gasoline prices adding to gains in other 

energy categories. 

     Food prices were up 0.3%, driven higher by solid gains in beef, 

pork and vegetables. 

     Trade services prices fell 0.3% in the month on declining profit 

margins. The core rate the BLS prefers, excluding the change in trade 

services as well as food and energy, was up 0.4% in November. 

     The year/year rates for these measures indicated some acceleration. 

Overall PPI was up 3.1% year/year in November after a 2.8% year/year 

rise in October, hitting its strongest rate since January 2012, but a 

12.1% year/year gain in energy prices was mostly to blame for the 

increase. 

     At the same time, the year/year rate for PPI excluding food and 

energy held steady at 2.4% in October, but the year/year rate for PPI 

excluding food, energy and trade services rose to a record 2.4% from 

2.3% in October. This series only goes back to August 2014. 

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