Wholesale price inflation breaks record 9.6% in past 12 months – press enterprise


WASHINGTON (AP) – Wholesale prices jumped a record 9.6% in November from a year earlier, an indication of lingering inflationary pressures

The Labor Department said on Tuesday that its producer price index, which measures inflation before it reaches consumers, rose 0.8% in November after a monthly gain of 0.6% in October. It was the highest monthly reading in four months.

Food prices, which fell 0.3% in October, jumped 1.2% in November. Energy prices rose 2.6% after rising 5.3% in October.

The 12-month increase in wholesale price inflation set a new record, breaking past 12-month highs of 8.6% set in September and October. The records for wholesale prices date back to 2010.

Core inflation at the wholesale level, which excludes volatile food and energy, rose 0.8% in November, with underlying prices rising 9.5% over the past 12 months. last months.

The increase in wholesale prices was widespread, driven by a 1.2% rise in the cost of goods and a 0.7% increase in the price of services.

Within the goods category, the price of scrap metal and scrap rose 10.7% while the price of gasoline, jet fuel and industrial chemicals all increased. In the food category, the price of fresh fruits and vegetables has increased while the price of chickens has fallen.

The surge in wholesale prices follows news on Friday that consumer prices rose 6.8% for the 12 months ending in November, the largest increase in 39 years, as prices for the energy, food and many other items have skyrocketed.

The Federal Reserve, which is holding its last meeting of the year this week, is expected to announce on Wednesday that it will step up the pace at which it cuts its monthly bond purchases, paving the way to start raising its benchmark interest rate, maybe by mid-October. 2022 as he seeks to demonstrate his determination to control inflation.

Mahir Rasheed, senior economist at Oxford Economics, said he expected wholesale price pressures to peak in the current quarter, but warned that this forecast may turn out to be too optimistic given booming supply chains.

“Persistent supply headwinds will keep input and transport costs down and will only allow price pressures to gradually ease,” he said in a study.

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