U.S PPI Slightly Declined in October – November Report

The producer price index was published today. It showed a moderate decrease in
the PPI for finished goods in October compared to September – a decrease of
0.3%. This report also serves as an indicator for the upcoming U.S core CPI to
be published tomorrow, November 16th. The energy index is one of the prime
factors that declined during October by 1.4%, while the food index slightly
inclined by 0.1%. On an annual scale, the PPI inclined by 5.9% during the past
12 months. The Producer Price index excluding food and energy remained unchanged
during October. This PPI ex food and energy is estimated to have a lagged
negative linear correlation with gold price; i.e. as the PPI falls, gold price
tends to rise the following day. Furthermore, the PPI excluding food and energy
has a positive linear correlation with silver price. These relations are mainly
directed via the U.S dollar changes.