Producer Price Index (PPI)
This morning’s inflation data was November's Producer Price Index (PPI) that revealed a 0.3% rise in the overall reading and a 0.4% increase in the core data. Both readings exceeded forecasts of up 0.2% for each, signaling inflationary pressures at the manufacturing level of the economy were stronger than expected. The stronger monthly readings also bumped the year over year numbers higher than predicted. Since rising inflation makes long-term securities, such as mortgage bonds more attractive to investors, these readings were bad news for mortgage rates.