Core PPI Comes in Cool
With inflation now top-of-mind for all investors, the first major inflation-related data point came in cooler than expected. Core PPI (Goods) ticked down to 2.0% YoY in December from 2.2% in November. The more volatile Core PPI ticked down to 2.25% from 2.44%.
The 10-year breakeven inflation rate is now 2.03%, up from 1.86% at the start of December.