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Input Stories

Producer Prices See Strong Monthly Increase

Producer prices in November saw the strongest monthly gain since July and continue to increase solidly year to date, according to the Bureau of Labor Statistics.

The data: Producer prices for final demand goods and services increased 0.8%, while producer prices for final demand goods rose 1.2%, an increase of at least 1% for the eighth time so far in 2021. Other highlights:

  • Food and energy costs increased 1.2% and 2.6%, respectively.
  • Excluding food and energy, producer prices for final demand goods rose 0.8%, an increase from October’s 0.6% and the fastest pace since July.

The bigger picture: “Over the past 12 months, producer prices for final demand goods and services jumped 9.7% (seasonally adjusted), up from 8.8% in October and the largest increase on record for a series dating to November 2009,” said NAM Chief Economist Chad Moutray. “Meanwhile, core producer prices increased 6.9% year-over-year in November, up from 6.3% in October and also an all-time high.”

Effects on manufacturing: Manufacturers continue to point to rising raw materials costs and supply chain disruptions as their chief challenges.

  • “The rapid acceleration in prices in this data helps to explain why,” Moutray said.
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