The Producer Price Index (PPI), which measures inflation on the wholesale level, was flat in November. On an annual basis, PPI declined from a downwardly revised 1.2% to 0.9%, which was lower than expected. Core PPI, which also strips out volatile food and energy prices, was flat for the month with the year-over-year reading down from 2.3% (also downwardly revised) to 2%.

What’s the bottom line? This latest PPI report is another encouraging sign that inflation is easing, with November’s 0.9% year-over-year reading a sharp drop from last year’s 11.7% peak. Plus, PPI tends to lead the way for CPI, which suggests further good progress moving forward.