By Breitbart News Network | Created at 2024-12-12 17:21:55 | Updated at 2024-12-26 04:08:45
1 week ago
Prices paid to U.S. producers of goods and services rose at a rapid clip in November, the latest sign that progress on bringing down inflation has stalled and inflation may be in danger of rising again.
The producer price index—or PPI—rose 0.4 percent November, the Bureau of Labor Statistics said on Thursday morning. That was one-tenth of a point higher than expected. In addition, the prior month’s figure was revised up from an increase of 0.2 percent to 0.3 percent.
Compared with a year ago, the producer price index is up three percent, the largest year-over-year gain since February 2023.
The PPI measures a basket of prices paid to U.S. producers of goods and services. It differs from the better-known consumer price index but both are measures of inflation. The PPI excludes imports but includes exports, while the CPI does the opposite. PPI also includes prices paid by governments and businesses, two purchasers excluded by the CPI’s narrower focus on consumers.
Core producer prices, which exclude food and energy prices, rose by a milder 0.2 percent, a slowdown from the 0.3 percent rise a month earlier. For the year, core producer prices are up 3.4 percent.
Another measure—often called “core core” producer prices—rose by 0.1 percent for the month and is up 3.5 percent from year ago. This measure excludes food, energy, and trade services, a metric that tracks the margins of retailers and wholesalers.
The PPI is not a measure of wholesale prices, although it is often mistakenly described that way.
A sharp 3.1 percent rise in food prices was responsible for much of the headline increase. That was driven by a 54.6 percent jump in the price of eggs.
Goods prices rose 0.7 percent, largely driven by the increase in foods. Services prices rose 0.2 percent.
