U.S. November producer prices rise 0.2% m/m, below estimates

JOON HYOUNG LEE

Summary

The U.S. Producer Price Index (PPI) rose 0.2% month on month in November, undershooting the 0.3% forecast by 0.1 percentage point.
A sharp rise in energy prices pushed final demand goods prices up 0.9% m/m, while final demand energy prices jumped 4.6%.
The core PPI, which excludes volatile energy and food, rose 0.2% m/m and 3.5% y/y.

Forecast Trend Report by Period

U.S. wholesale prices in November last year came in below market expectations.

The Bureau of Labor Statistics under the U.S. Department of Labor said on the 14th (local time) that the U.S. Producer Price Index (PPI) rose 0.2% month on month in November last year. That was 0.1 percentage point below the consensus estimate compiled by Dow Jones (0.3%). The year-on-year increase was tallied at 3.0%.

Driven by a surge in energy prices, prices for final demand goods rose 0.9% from the prior month. It was the strongest monthly gain in about two years since February 2024 (0.9%). Final demand energy prices jumped 4.6% month on month.

By contrast, prices for final demand services were unchanged from the previous month. Core PPI, which excludes volatile energy and food prices, increased 0.2% month on month and 3.5% year on year.

The producer price index—also referred to as wholesale prices—feeds into final consumer-goods prices with a lag and is regarded as a leading indicator of consumer inflation.

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