Wholesale Prices Jump At Fastest Rate in History – Up Nearly 10% In November

U.S. wholesale prices rose at the quickest pace ever recorded in November, as inflation concerns mount.

The Producer Price Index for final demand goods increased 9.6% over the last year in November.

PPI is a gauge of the prices that businesses have to pay for their inputs. Moreover, the measure overshot expectations, as experts expected an increase of just 9.2%.

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On a monthly basis, the index for final demand services rose 0.7%. On the other hand, the index for final demand goods rose a whopping 1.2% on a monthly basis.

PPI excluding food and energy rose 0.7% for the month and 6.9% since last year. Experts expected the core PPI to rise 0.4% and 7.2%.

Producer prices rose sharply in 2021, as the economy recovered from the pandemic. The PPI rose sharply from 1.6% in January all the way to the record levels in November.

PPI Data, Bls
Data from BLS

Not Really Transitory

The data comes as key officials and insiders concede that inflation is no longer “transitory”. Recent polls also suggest that Americans are very concerned with inflation.

Significantly, Federal Reserve policy impacts both consumer prices and producer prices. On the other hand, the two price indices also impact each other.

In fact, as producer prices rise, businesses may have to pass their costs down to the consumer. That is why consumer price increases will likely follow.

Accordingly, the November consumer price index rose a whopping 6.8%, the highest increase in nearly 40 years.

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