US November Producer Prices Rise 0.4% MoM... Inflation Alert

The United States' Producer Price Index (PPI) for November significantly exceeded market expectations.

According to data released by the U.S. Department of Labor on the 12th (local time), the U.S. PPI for November rose by 0.4% compared to the previous month. This figure greatly surpasses the market expectation of 0.2%. On a year-over-year basis, it increased by 3.0%.

The core producer prices, excluding energy and food, also recorded 3.4%, surpassing the expected 3.2%.

The number of unemployment claims announced at the same time also significantly exceeded the market expectation of 221,000, reaching 242,000. The number of new unemployment claims is one of the indicators that can gauge the overheating of the U.S. labor market. A decrease in unemployment claims is interpreted as a decrease in the number of unemployed.

Since Trump's election, the asset market has shown tremendous upward momentum, but the real economy sectors such as inflation and the labor market have not shown a very favorable situation.