Wholesale prices have increased at the fast lighting rate in November, proving that the inflation forces are still very strong, the Labor Department underlines. The Department has been tracking the headline numbers since November 2010.
After gaining 0.8 percent in November, the producer cost index for final demand grew 9.6 percent during the period of twelve months.
Prices climbed 0.7 percent for the month, bringing core PPI to 6.9%, which is the highest increase on records. The prices don’t include energy, trade services, and food costs.
These figures come at a time when headline consumer prices are rising at the quickest rate in nearly 40 years, and core inflation is at its highest level in nearly 30 years.
For months, Fed officials had insisted that inflation was “transitory” and that it was closely linked to Covid pandemic-related variables that would eventually fade. The key drivers of inflation have been supply chain delays and increasing demand, which have only been somewhat reduced.
Producer prices rose 1.2 percent for the month, a tad slower than the 1.3 percent growth in October.
Final demand prices of energy increased by 2.6 percent in November, while food prices increased by 1.2 percent. Warehousing and transportation saw a 1.9 percent increase, while portfolio management saw a 2.9 percent gain.