S&P 500
7,633.20
+0.31%
Dow Jones
53,893.00
+1.14%
Nasdaq 100
29,106.20
+0.99%
Russell 2000
2,995.41
+0.37%
FTSE 100
10,904.40
+0.20%
Nikkei 225
64,309.90
+1.28%

Companies and Brands

PPI Neutrality… No Inflation; No Deflation

Photo of Jon C. Ogg
By Jon C. Ogg Updated Published
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

Invalid Image
The Labor Department’s Bureau of Labor Statistics has just released the December 2011 producer price index as a measurement of wholesale inflation in the United States.  The December figure came to -0.1% on the headline PPI and was +0.3% on the core (ex-food and energy).

Bloomberg had a consensus reading of 0.0% on the headline figure and +0.1% on the core PPI reading.  This is a low enough figure that it will keep the inflation hawks at bay and it will also manage to keep the deflation camp muted for the most part.

We would not expect much market impact in the stock futures nor in the bond futures as a result of this month’s PPI reading.

More important is that this will set the tone for a muted consumer price index reading at 8:30 AM EST on Thursday.  The Bloomberg consensus targets for December CPI are +0.1% on the headline CPI and +0.1% on the core (ex-food and energy) CPI.

JON C. OGG

Contact [email protected] for any questions or corrections.

Follow 24/7 Wall St. on Google
Photo of Jon C. Ogg
About the Author Jon C. Ogg →

Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. www.247wallst.com.

Featured Reads

Our top personal finance-related articles today. Your wallet will thank you later.

The 4% Rule vs. a Dividend Paycheck: Which Makes $1.25 Million Last Longer?
Michael Williams |

The 4% Rule vs. a Dividend Paycheck: Which Makes $1.25 Million Last Longer?
Why Your Ex-Spouse Could Inherit Your $600,000 401(k) Even After Remarriage
Marc Guberti |

Why Your Ex-Spouse Could Inherit Your $600,000 401(k) Even After Remarriage

Continue Reading

Jon C. Ogg |

Very Mixed Bag on Economic Data: Inflation, Retail Sales and Empire Manufacturing

A slew of economic data was released this morning. We got a look at retail sales, wholesale inflation via producer…

Why Consumer Inflation May Now Be in the Sweet Spot
Jon C. Ogg |

Why Consumer Inflation May Now Be in the Sweet Spot

All of a sudden, inflationary fears may be turning into a view that inflation is entering the sweet spot for…

Consumer Price Index Reaction Proves Markets Are Still Inefficient
Jon C. Ogg |

Consumer Price Index Reaction Proves Markets Are Still Inefficient

Yesterday we had warned that the financial markets were bracing for the inflation card when the latest Consumer Price Index…

Jon C. Ogg |

Weekly Jobless Claims and Consumer Prices Bring Profit Taking

Ed Brown, via Wikimedia CommonsThe Labor Department has two key readings out this Thursday — the Consumer Price Index and…

Consumer Prices Look More Tame Into Year-End as Oil and Energy Prices Fall
Jon C. Ogg |

Consumer Prices Look More Tame Into Year-End as Oil and Energy Prices Fall

After a somewhat muted Producer Price Index report for November, the U.S. Department of Labor has released its November reading…

Jon C. Ogg |

Tame Producer Price Inflation, But First Uptick In Months

The Labor Department’s report on wholesale inflation remains muted.  The Producer Price Index for the month of June was up…

Jon C. Ogg |

Consumer Prices Actually Hit the Fed’s Inflation Target

ThinkstockWhile the producer prices might have shown some fears of deflation, the Consumer Price Index (CPI) for May is showing…

Jon C. Ogg |

FOMC Has Little Inflation Worry as May CPI Remains Tame — June Is Another Story

ThinkstockThe U.S. Labor Department already released its reading for wholesale prices via the Producer Price Index for May, and now…

Consumer Inflation Looking More Active Than Wholesale Inflation
Jon C. Ogg |

Consumer Inflation Looking More Active Than Wholesale Inflation

Sometimes there is big inflation in parts of the economy while other parts of the economy see no inflation at…

Top Gaining Stocks

Airbnb
ABNB • Vol: 15,910,694
Microchip Technology
MCHP • Vol: 19,138,968
Palantir
PLTR • Vol: 77,211,891
Moderna
MRNA • Vol: 6,818,560
Axon Enterprise
AXON • Vol: 1,591,659

Top Losing Stocks

Trade Desk
TTD • Vol: 133,432,265
Coterra Energy
CTRA • Vol: 73,319,495
Akamai
AKAM • Vol: 8,143,347
Zoetis
ZTS • Vol: 12,782,297
ResMed
RMD • Vol: 3,810,433