Last month, the United States recorded a sharp acceleration in the growth rate of wholesale inflation, which is an undesirable sign that some prices may increase before they come down the pike to consumers.
The Producer Price Index, a measurement of average price changes seen by manufacturers, rose by 3% year-on-year in November in the mentioned country. This indicator also showed an increase of 0.4% compared to the figure recorded in October. The relevant information was published on Thursday, December 12, by the US Bureau of Labor Statistics.
It is worth noting that there is a significant acceleration in the rate of increase in wholesale inflation in the United States. In October, the corresponding indicator grew by 2.6% year-on-year. Also at that time, wholesale inflation rose by 0.3% compared to the figure for September.
The Producer Price Index, recorded in the United States last month, is the highest since February 2023.
The data published on Thursday did not weaken the expectations of market participants and economists that the Federal Reserve will decide next week to cut interest rates by a quarter point.
Oren Klachkin, Nationwide’s financial markets economist, said producer prices, and the broader inflation complex, are on an extended and bumpy journey to the Fed’s goal. According to the expert, at the beginning of next year, the central bank of the United States may take a pause in easing monetary policy due to the observed signs of a slowdown in disinflation.
It is worth noting that last month in the US, food prices also showed a significant increase. The corresponding indicator rose by 3.1% on a monthly basis. These rates of upward dynamic are the most intense since November 2022.
As we have reported earlier, US Consumer Prices Demonstrate Growth.
