Wholesale Inflation Softer Than Expected, Retail Sales Move Higher in November

Wholesale Inflation Softens, Retail Sales Rise

Wholesale prices moved up less than expected while consumers kept up a heavy buying pace, according to economic data released on Wednesday.

Wholesale Inflation

Wholesale prices rose 0.2% in November, lower than the expected 0.5% increase ^[1]. This softening in wholesale inflation could indicate a slower pace of price increases in the coming months.

Retail Sales

Retail sales, on the other hand, moved higher in November, with a 0.8% increase ^[1]. This growth in retail sales suggests that consumers are still willing to spend, despite the softening in wholesale inflation.

Economic Outlook

The economic data released on Wednesday provides a mixed picture of the current economic situation. While wholesale inflation is softening, retail sales are still growing. This could indicate that the economy is experiencing a slowdown, but it is not yet in a recession.

Impact on Markets

The softening in wholesale inflation and the growth in retail sales could have a positive impact on the markets. The Dow Jones Industrial Average rose 100 points on Wednesday, while the S&P 500 index also gained 1% ^[2].

Conclusion

The economic data released on Wednesday suggests that the economy is experiencing a slowdown, but it is not yet in a recession. The softening in wholesale inflation and the growth in retail sales could have a positive impact on the markets.

Sources

[1] Wholesale inflation was softer than expected, retail sales moved higher in November
[2] Why the stock market keeps shrugging as Trump sows more political chaos