US producer price inflation soars to 2-year high at 3%

The annual US producer price inflation rate accelerated in November, hitting its fastest pace in nearly two years.

This signaled a rise in overall price levels in the world’s largest economy.

The Producer Price Index (PPI) rose 3% year-on-year (YoY) in November, up from 2.6% in October and 0.8% in November 2023, marking the highest increase since February of the same year, according to the US Commerce Department data released today, Dec. 12.

Core inflation, excluding food and energy, remained steady at 3.5% YoY, compared to 2.5% in November 2023.

On a monthly basis, the PPI increased by 0.4% in November after a 0.3% rise in October, exceeding forecasts of 0.2%.

The core PPI edged up 0.1% month-on-month (MoM).

Food prices grew 3.1% MoM, with table egg prices surging 54.6%. Overall goods prices rose 0.7%, including a 0.2% hike in energy prices.

Service prices inched up by 0.2%, led by an 0.8% rise in trade services, while transportation and storage costs fell 0.5%.