Market 01/18: CPI higher than PPI for the first time since 12/2020, year-end retail sales index disappointing

Producer inflation index PPI in December dropped the most since the start of COVID, reaching -0.5% from November and only up 6.2% YoY. This is the deepest monthly decline since 04/2020:

With the above decline, CPI lower than PPI for the first time since 12/2020 and is a welcome signal showing that inflation is starting to be controlled at the producer level:

However, not all investors are satisfied with the above data as current inflation is largely restrained by the decline in demand. This morning's PPI report shows demand for all kinds of goods and raw materials continues to plummet, raising concerns about sales as well as corporate profits in 2023, similar to yesterday's warning from Morgan Stanley: