11/18 – Weekly Economic Highlights
Recent inflation data releases from both the Consumer Price Index (CPI) and Producer Price Index (PPI) have been constructive for market participants, supporting asset prices and adjusting expectations for the future path of monetary policy. Last Thursday, November 10th, CPI was released, and both the headline and core numbers came in moderately below consensus expectations, pushing down the y/y year numbers for both headline and core CPI. The October y/y headline number was 7.7% versus 8.2% y/y in the prior month, and 6.3% y/y for the core number, versus 6.6% in the prior month. The trends in CPI inflation are poised to continue to improve as the elevated readings from November and December in 2021 roll out of the index. The PPI index was released on November 15th and the prints were also below consensus expectations on the headline and core numbers, lowering the y/y trends from the prior month. Both headline and core PPI ticked down 0.4% on a y/y basis to 8.0% and 6.7%, respectively. The PPI, consistent with the CPI, is also poised to benefit from high monthly readings of the prior year rolling out of the index in coming months.
