Wholesale Inflation Firms in November as Energy Drives Prices Higher

The Producer Price Index (PPI) for final demand rose 0.2% month over month, following a 0.1% increase in October and a sharper 0.6% gain in September. On a year-over-year basis, final demand prices were up 3.0% for the 12 months ended in November.

The monthly advance was almost entirely concentrated in goods. Prices for final demand goods climbed 0.9%, accounting for more than 80% of the overall increase. Within that category, energy prices surged 4.6%, reflecting renewed volatility in fuel markets. By contrast, prices for final demand services were flat, helping to temper broader inflationary pressure at the producer level.

Excluding the more volatile categories of food, energy, and trade services, core PPI rose 0.2% in November, easing from a 0.7% increase in October. Over the past 12 months, core producer prices advanced 3.5%, matching the fastest annual pace since March and signaling that underlying cost pressures remain sticky, even as headline inflation fluctuates.

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Bureau of Labor Statistics

About Joe Palmisano

Joe Palmisano is editorial director of Connect Money, where he oversees daily coverage of alternative assets, direct investments, financial advisory and the economy. He brings three decades of experience as a financial journalist, analyst and portfolio manager. Before joining Connect Money, Palmisano wrote for The Wall Street Journal, covering foreign exchange, global fixed-income and equity markets. He later served as a senior research analyst and portfolio manager, producing market analysis and managing foreign exchange and U.S. equity portfolios for FX Concepts. His work has also appeared in SFO Magazine and CMT Association publications. Palmisano earned a bachelor’s degree in finance from The American University and holds the Chartered Market Technician (CMT) designation and is a member of the CFA Institute.

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