zerohedge.com / by Tyler Durden / Jan 13, 2017 8:57 AM
While headline PPI came in at 0.3% on a sequential basis, as expected, and rose 1.6% on the year, also in line with expectations, it was the core PPI that came in modestly hotter than expected, printing at 0.2%, above the expected 0.1%, and rose 1.6% Y/Y, above the 1.5% expected, and far above the -1.1% drop reported one year ago.The headline jump was driven by a spike in energy prices, as final demand energy rose 2.6% in December. Accounting for almost half of the December jump in final demand goods prices, the index for gasoline climbed 7.8% , while heating oil was up 9.6%.
Away from the non-core energy and gasoline prices, the headline PPI rise was driven, surprisingly, mostly by “prices for securities brokerage, dealing, investment advice, and related services” which advanced 4.4%. In other words, brokers are capitalizing on the rush by retail investors to jump in the market and are hiking prices.
Nonetheless, on an annual basis, the 1.6% increase in PPI was the highest since August 2014.
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