Producer prices fell way more than expected in December, according to the latest Producer Price Index from he Bureau of Labor Statistics.
- M-O-M: The Producer Price Index fell 0.5% in December, this is much bigger than the 0.1% drop economists had projected and is the biggest decline since February 2020.
- Y-O-Y: Producer prices are up 6.2% in December, lower than November’s 7.2% print and the lowest level since March 2021.
In Other News
BEIGE BOOK: The Federal Reserve says “Overall economic activity was relatively unchanged since the previous report…Housing markets continued to weaken, with sales and construction declining across Districts…Most bankers reported that residential mortgage demand remained weak, and some said higher borrowing costs had begun to dampen commercial lending.” (FR)
RETAIL FAIL: In December, retail sales grew 6% year over year but unfortunately fell 1.1% month over month to about $677 billion. This was a bigger drop than economists were expecting…(AXIOS)
BULLARD SAYS STAY THE COURSE: St. Louis Fed President James Bullard said Wednesday that The Federal Reserve should keep on rapidly raising interest rates until they get above 5% in order to prevent a return of inflationary pressures…(WSJ)