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PPI Neutrality… No Inflation; No Deflation

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By Jon C. Ogg Updated Published
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The Labor Department’s Bureau of Labor Statistics has just released the December 2011 producer price index as a measurement of wholesale inflation in the United States.  The December figure came to -0.1% on the headline PPI and was +0.3% on the core (ex-food and energy).

Bloomberg had a consensus reading of 0.0% on the headline figure and +0.1% on the core PPI reading.  This is a low enough figure that it will keep the inflation hawks at bay and it will also manage to keep the deflation camp muted for the most part.

We would not expect much market impact in the stock futures nor in the bond futures as a result of this month’s PPI reading.

More important is that this will set the tone for a muted consumer price index reading at 8:30 AM EST on Thursday.  The Bloomberg consensus targets for December CPI are +0.1% on the headline CPI and +0.1% on the core (ex-food and energy) CPI.

JON C. OGG

Photo of Jon C. Ogg
About the Author Jon C. Ogg →

Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. a673b.bigscoots-temp.com.

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