U.S. PPI Rises 3.0% in November, Highest Since February

Dec 12, 2024, 01:31 PM

U.S. producer prices climbed more than expected in November, reaching the highest level since February 2023 and signaling persistent inflationary pressures in the economy. The Producer Price Index (PPI) increased by 0.4% month-over-month, exceeding economists' estimates of a 0.2% rise, the Labor Department reported on Thursday. On an annual basis, PPI rose 3.0%, surpassing the 2.6% forecast and October's revised 2.6% gain. Core PPI, which excludes volatile food and energy prices, advanced 0.2% month-over-month and 3.4% year-over-year, with the annual core reading clearly above 3.0%. Both PPI and Consumer Price Index (CPI) inflation are now on the rise. The uptick in producer prices may influence the Federal Reserve's monetary policy decisions as they assess the strength of the economy amid ongoing inflationary pressures, suggesting that the Fed's job in combating inflation is far from done.