Market Update: PPI and Retail Sales Results Come in Lower Than Expected
There's a lot of economic data scheduled to be released today. However, we'll go over the most important ones you need to know about - the Producer Price Index (PPI) and Retail Sales.
The Producer Price Index essentially measures the inflation of goods sold by manufacturers and is considered to be a leading indicator of consumer inflation. When stripping out food and energy from the measure, we get core PPI. Today's numbers for December came in as follows:
PPI (MoM): -0.5% vs -0.1% expected
PPI (YoY): 6.2% vs 6.8% expected
Core PPI (MoM): 0.1% vs 0.1% expected
Core PPI (YoY): 5.5% vs 5.7% expected
On the other hand, Retail Sales, as the name suggests, measures the change in spending at retailers. It is commonly used as a gauge for consumer health as increased spending indicates a strong economy. When excluding automobiles, we are left with core retail sales. However, these numbers are not adjusted for inflation. Today's report came in as follows:
Retail Sales (MoM): -1.1% vs -0.8% expected
Retail Sales (YoY): 6.02% (no forecast)
Core Retail Sales (MoM): -1.1% vs -0.4% expected
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