【US Core PPI Data Surpasses Expectations, Market Faces Reassessment】

The just-released inflation data has caused a major news flash—US core PPI in November 2025 surged to 3.0% year-over-year, not only exceeding the previous 2.9% but also sharply breaking through market expectations of 2.7%. What does this mean? It indicates that the cost pressures on the production side are more stubborn than everyone thought.

Let's look at the specific numbers:

Core PPI YoY growth reaches 3.0% (market expectation 2.7%)
Monthly MoM, core PPI unchanged (+0.0%), but overall PPI still increased by 0.2%

Why is this set of data so critical? Because PPI acts like an "economic probe," signaling ahead of CPI. Rising production costs → increased corporate pressure → eventually passed on to consumers, causing CPI to rise. In other words, the current high PPI suggests that future CPI still faces upside risks.

**What does this mean for the market?**

The Federal Reserve may need to hit the brakes again on rate cuts. With inflation still so "sticky," the likelihood of maintaining a high-interest-rate environment increases. The impact on the crypto market is evident—under high interest rates, risk assets come under pressure, liquidity tightens. Meanwhile, stocks, bonds, commodities, and other assets will face re-pricing pressures, and market volatility could significantly increase.

"Persistent inflation" has become one of the biggest macro risks currently. The previously anticipated "soft landing + rapid rate cuts" dream now appears to need reassessment. A longer high-interest-rate cycle means delaying the market’s easing environment, a key variable all traders need to incorporate into their decision-making framework.

Data source: U.S. Bureau of Labor Statistics