Economic news
12.12.2024

U.S. PPI climbs 0.4 per cent in November

The Labor Department announced on Thursday the U.S. producer-price index (PPI) climbed 0.4 per cent m-o-m in November, following an upwardly revised 0.3 per cent m-o-m rise (from +0.2 per cent m-o-m) in October. This represented the strongest monthly gain in PPI since June (+0.4 per cent m-o-m).

For the 12 months through November, the PPI soared by 3.0 per cent, sharply accelerating from an upwardly revised 2.6 per cent advance (from +2.4 per cent) in the previous month. This marked the strongest annual gain since February 2023 (+4.7 per cent).

Economists had predicted the headline PPI would increase 0.2 per cent m-o-m and 2.6 per cent over the past 12 months.

According to the report, around 60 per cent of the November gain in the headline index can be attributed to a 0.7-per cent m-o-m jump in the index for final demand goods. In addition, the index for final demand services increased 0.2 per cent m-o-m.

Excluding volatile prices for food and energy, the PPI went up 0.2 per cent m-o-m and soared 3.4 per cent over 12 months. Economists had forecast advances of 0.2 per cent m-o-m and 3.2 per cent y-o-y for November. In October, the core PPI posted a 0.3 per cent m-o-m gain and a 3.4 per cent y-o-y surge (revised from +3.1 per cent y-o-y in the initial estimate).

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