Stronger USD likely to weigh on US core prices next year

Producer prices in the United States increased in November. Headline and core producer price index both are increased by 0.3% month on month in November. Transport and warehousing also posted same growth rate of 0.3%.

Energy prices and goods prices, in contrast, are dropped by 0.6% and 0.1% respectively, during the same period.  
 
"We see the positive price movements in today's report as a respite from declining prices. The jump in trade services is unlikely to continue, and we maintain our conviction that dollar appreciation will weigh on the prices of core goods through the middle of next year", argues Barclays.