After consumer prices rose as expected (with shelter cost growth slowing dramatically but food costs surging), producer prices rose less than expected in December, up just 0.3% (vs +0.4% exp). This left producer prices up just 0.8% YoY, the same as in November.
Source: Bloomberg
It appears government-imposed lockdowns trumped supply chain disruptions with core PPI slowing from +1.4% in November to +1.2% in December (below the 1.3% expected).
Clearly, the pandemic response is continuing to limit pricing power.
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