Input Stories

U.S. producer prices rose twice as much as expected in November (Associated Press).

What’s going on: “The Labor Department reported Thursday that its producer price index—which tracks inflation before it reaches consumers—rose 0.4% last month from October, up from 0.3% the month before. Measured from 12 months earlier, wholesale prices climbed 3% in November, the sharpest year-over-year rise since February 2023.”

• Economists had anticipated a 0.2% rise (Business Insider).
• Much of the increase was due to higher-than-anticipated food prices.
• The data comes a day after the government released consumer prices, which also rose in November.

Core PPI: So-called core producer prices, which exclude often-volatile food and energy costs, rose less on a monthly basis—by 0.2% from October to November—and 3.4% from November 2023 (AP).

What it means: “Despite the modest upticks in inflation last month, the Federal Reserve is poised to cut its benchmark interest rate next week for a third consecutive time.”