News

The Producer Price Index for final demand (also known as wholesale prices) increased 0.4% in November, after rising 0.3% in October. Over the past year, the final demand index rose 3.0% on an unadjusted basis, which is the largest increase since the year-over-year increase in February 2023 of 4.7%. Prices for final demand excluding foods, energy and trade services inched up 0.1%, after rising 0.3% in October.

In November, prices for final demand services increased 0.2%, the fourth consecutive increase, while prices for final demand goods rose just 0.7%. Much of the increase in the index can be attributed to prices for final demand of foods, which increased 3.1%. The index for final demand goods, excluding foods and energy, increased just 0.2%. More than one-third of the increase in prices for final demand services is due to margins for machinery and vehicle wholesaling, increasing 1.8%.

Processed goods for intermediate demand were unchanged. On the other hand, over the 12 months ending in November, prices for processed goods for intermediate demand fell 0.5%. Within processed goods for intermediate demand, the index for particleboard and fiberboard jumped 11.4%. Overall, in November, a 0.1% increase in prices for processed materials less foods and energy and a 0.9% increase in processed foods and feeds offset a 1.2% decrease in prices for processed energy goods.

Meanwhile, prices for unprocessed goods for intermediate demand moved up 0.6% in November, after increasing 2.4% in October. The increase was driven by a 2.9% rise in unprocessed foodstuffs and feedstuffs. Meanwhile, nonfood materials less energy prices edged up just 0.4%, and unprocessed energy materials decreased 2.0%. Over the 12 months ending in November, prices for unprocessed goods for intermediate demand fell 1.9%.