PPI Shows Signs of Cooling Inflation With Smaller December Gain

The video discusses the core and final demand numbers, highlighting a decrease in the core from last month and a slight increase in final demand. It notes the impact of declining commodity prices on food and energy, which may rise again. Yearly final demand is up 9.7%, with the core at 6.9%, matching expectations. A breakdown shows services up by half a percent, while goods are down, reflecting commodity changes. Despite lower month-over-month numbers, the Fed is unlikely to find comfort in these figures.

What was the core economic indicator for December compared to November?

• It decreased from 7/10 to 5/10

• It increased from 6/10 to 7/10

• It remained the same at 5/10

• It increased from 5/10 to 7/10

What was the final demand number for December?

• 8/10

• 5/10

• 2/10

• 7/10

What factor contributed to the drop in final demand numbers in December?

• Increase in energy prices

• Stable commodity prices

• Decline in commodity prices for food and energy

• Increase in service costs

What was the year-over-year increase in final demand?

• 6.9%

• 7.5%

• 9.7%

• 8.5%

How did the Federal Reserve likely view the month-over-month numbers?

• As a sign of economic stability

• As a reason to lower interest rates

• As not providing comfort due to ongoing inflation

• As a positive indicator for economic growth