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Producer Prices Stay the Same

U.S. producer prices were unexpectedly unchanged in November amid a decline in the cost of energy products, according to Reuters (subscription).

What’s going on: “Goods prices were unchanged in November as a 1.2% decline in the cost of energy products was offset by a 0.6% rebound in food prices. Goods prices dropped 1.4% in October.”

  • The cost of food, which had decreased 0.1% in October, rose on a 58.8% surge in wholesale egg prices.
  • Energy costs were pulled lower by a 4.1% dip in gasoline prices. Jet fuel and liquefied petroleum gas costs also went down.
  • Excluding food and energy, which can be volatile, the price of goods increased 0.2% in November, after being unchanged the previous month.

The Fed: Though inflation is still higher than the Federal Reserve’s 2% goal, “price increases are becoming less broad-based,” and the central bank is likely “done hiking rates this cycle,” according to economists.

  • The Fed’s interest-rate decision is expected later today.
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