The U.S. Bureau of Labor Statistics has announced that the year-over-year producer price index (PPI) reached record marks in November, with the rate rising 0.8% that month.
The final demand index increased 9.6% over the past year, which is the highest increase since 12-month data started being calculated in November 2010. The Dec. 14 report said that last month, the index for final demand services increased 0.7% while prices for final demand goods went up 1.2%. Final demand prices increased 0.6% in the each of the past three months.
“The index for final demand less foods, energy and trade services moved up 0.7% in November, the largest rise since climbing 0.8% in July,” the report said. “For the 12 months ended in November, prices for final demand less foods, energy and trade services increased 6.9%, the largest advance since 12-month data were first calculated in August 2014.”
The 9.6% increase on wholesale prices from a year ago was not only the fastest pace on record, but CNBC reported that it was even worse than 9.2% rate that economists had predicted. This was according to information gathered by FactSet. The PPI data released Dec. 14 comes on the heels of news that consumer prices are rising at the highest rate in 40 years and core inflation at its highest in 30 years.
When looking at final demand for services, the rise of 0.7% was the 11th consecutive increase reported. The Bureau of Labor Statistics reported that more than half of the increase can be traced to final demand for services not including things like transportation and warehousing, which increased 1.9%.
For product detail, the bureau’s report said indexes for guest room rental, securities brokerage, dealing, investment advice, fuels and lubricants, retailing, airline passenger services and transportation of freight and mail all increased. However, margins for chemicals and allied products fell 1.3%.
Prices for iron and steel scrap increase 10.7%, while indexes for things like gasoline, fresh fruits, vegetables, industrial chemicals and jet fuels also increased. The price for diesel fuel, however, fell 2.6%.