Wholesale prices benign but is it now old news? Inflation breakeven quietly at highest since mid November

Headline PPI has now fallen for 3 straight months m/o/m thru December with the one tenth drop this past month. The estimate was for a rise of one tenth. The core rate was flat m/o/m where the forecast was for an increase of 2 tenths. Taking out trade too in addition to food and energy saw a gain of 2% m/o/m as expected. Versus last year, headline wholesale prices are up 1%, by 1.8% ex food and energy and by 2.5% ex food, energy and trade. 

On the goods side, half of the drop was due to a 12.4% fall in diesel fuel with overall energy prices down by 1.2% m/o/m while food prices were lower by .9% m/o/m. 

Prices for services were flat driven by a .8% m/o/m fall in trade and a .4% decline in 'transportation and warehousing' while ex the above, service prices were up by .4%. The main drag here was the 1.6% fall in the price of 'truck transportation of freight' and down 9% y/o/y. Prices for air freight fell by .4% m/o/m, though up 5% y/o/y. Rail prices were flat. Juicing prices was in part due to the rebound in financial markets as "prices for securities brokerage, dealing, and investment advice" jumped by 3.3%. Prices related to vehicles fell.