Here Come Producer Prices...
Economists estimate producer prices in November fell 0.1% month-over-month, or increased by just 1.4% year-over-year. Excluding food and energy, core prices are estimated to have climbed by 0.1% and 1.8%, respectively.
"The PPI survey for petroleum products is in the first half of the month, so this month's report probably won't pick up a steep further drop in gasoline prices after mid-November," Morgan Stanley's Ted Wieseman said. "So we see energy prices falling a relatively modest 0.7%. Farm price figures showed upside in fruits and vegetables but pointed to a pullback in meat after a surge last month and showed weak dairy prices, so we forecast a 0.4% drop in food after a 1.0% gain in October. A partial reversal in the volatile trade services component after a 1.5% jump in October should also weigh on the headline PPI."