US Producer Price Inflation Rose in November
Producer prices in the US rose in November amid rising prices for food and transportation services, while a measure of basic costs accelerated, which led to some potential signs of inflationary pressure accumulating in the economy.
The US Labor Department reported, that producer price index (PPI) increased by 0.1% mom in November, after 0.6% growth in October. On an annualized basis, the PPI rose 2.5% last month, slowing from October's 2.9% gain. Both indicators were in line with economists’ expectations.
Core PPI increased by 0.3% mom and 2.7% in the 12 months through November. Analysts had expected core PPI to increase 0.1% month-on-month and 2.5% on an annualized basis.
It was also reported, that wholesale energy prices fell by 5.0% last month and showed the largest drop since September 2015. Gasoline prices dropped by 14.0% (the biggest decline since February). The cost of healthcare services increased by 0.1% last month. The cost of services increased 0.3% in November.