The U.S. wholesale prices experienced a slight increase in November, as indicated by a report released by the Labor Department. This report, originally scheduled for December 11, was delayed due to a previous federal government shutdown lasting 43 days.
Producer Prices Increase in November
The Producer Price Index (PPI), which tracks inflation before it affects consumers, climbed by 0.2% in November compared to October. Furthermore, the index rose by 3% when measured year-over-year.
Gasoline Prices Surge
November saw a significant rise in gasoline prices. However, when food and energy costs are excluded, core wholesale prices remained stable from October but still rose by 3% compared to November 2024.
Consumer Price Trends
In a related report, the consumer price inflation rate exhibited a modest increase of 0.3% from November to December. Year-over-year, this figure stands at 2.7%, still exceeding the Federal Reserve’s target rate of 2%.
Impact of Tariffs on Inflation
The implementation of sweeping import taxes, initiated by President Donald Trump, was anticipated to drive inflation higher. However, the actual impact has been less severe than initially expected.
Upcoming Reports
The Labor Department plans to release the Producer Price Index for December on January 30, showcasing the continued importance of tracking wholesale prices in economic assessments.
