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Thursday, November 16, 2023

The high base effect for the US PPI is wearing out.

As we can see, the benign PPI numbers (Core PPI 2.4% YOY and PPI 1.3% YOY) are caused by a significant drop in energy prices and also the high base effect from the prior year.  The high base effect will wear out soon as indicated by the YOY chart and the PPI numbers won't decline any further.

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