World Perspectives

Produce Price Inflation Mixed Signals

Producer price inflation (PPI) ended 2024 up 0.2 percent in December. That is a modest gain and was below pre-report expectations. Nonetheless, the PPI was 3.3 higher than a year ago, and substantially higher than the Federal Reserve’s 2 percent target. That stickiness trend will keep inflation squarely in the radar of the Fed’s focus in 2025. Moreover, as WPI reported on 6 January, the “Trump agenda of tariffs and immigration action which could reduce labor supply, and tax cuts all have the potential to be inflationary.” This is particularly noteworthy as commodity and goods prices were up 0.6 percent in December, and services were flat. 01142025dj.png 34.57 KBThe increase in the PPI in December was led by energy prices, which jumped...

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Livestock Industry Margins

Beef packer margins improved for a second consecutive week but remained firmly negative. Margins rose $70/head to –$179 as the Choice cutout advanced $4.56/cwt and fed cattle prices were largely stable. The recovery narrowed the gap between breakeven and cash cattle values to roughly $19/...

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From WPI Consulting

Weighing in on strategic realignment

WPI’s team was retained by the governing board of a U.S. industry organization to review a decision, reached by vote, to invest significant assets into the development and management of an export trading company. WPI’s team conducted a formal review of this decision and concluded that the current level of market saturation would limit the benefits of the investment. Based on WPI’s analysis and recommended actions, the board subsequently reversed its decision and undertook a strategic planning effort to identify more impactful investments. On behalf of numerous clients, WPI has not only assisted in identifying strategic paths but also advised their implementation.

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