Energy Prices Are Keeping Inflation Low
Falling energy prices are holding back inflation.
Producer prices fell 0.2% in November, which was a bigger drop than the 0.1% decline expected by economists.
"Sixty percent of the November decline in prices for final demand goods can be attributed to the index for gasoline, which dropped 6.3 percent," the Bureau of Labor Statistics noted.
"Lower oil prices will drag down headline PPI inflation in the coming months, but we still think that the stronger labor market will mean that core PPI inflation will have risen above 2% in the second half of next year," Capital Economics' Paul Dales said.
Below is a breakdown of price changes by grouping.
BLS
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