The Ministry of Labor reported on Tuesday that wholesale prices rose at record fastest paces in November, with the latest signs that inflationary pressures that are plagued the economy still exist.
The Producer price index Final demand has increased by 9.6% in the last 12 months, after an additional 0.8% increase in November. According to FactSet, economists were looking for a 9.2% annual profit.
Excluding food, energy and trade services, prices rose 0.7% this month and core PPI was 6.9%, another record high. The estimates were 0.4% and 7.2% gains, respectively. This means that the monthly gain was faster than the estimate, but the year-over-year measurement was a bit slower.
The Ministry of Labor’s heading number record dates back to November 2010, while major calculations date back to August 2014.
These figures are accompanied by major consumer prices running at the fastest pace in about 40 years and the highest core inflation in about 30 years.
Demand for goods continues to be a major factor in producer prices, rising 1.2% monthly, a bit slower than the 1.3% rise in October. Inflation for end-demand services is 0.7% per month, much faster than 0.2% in October, indicating that services may catch up with prices after delaying most of the recovery.
Stock index Mixed after releaseInvestors see the strong potential of inflation and the Federal Reserve’s policy response as a threat to the year of the stock boom.
The Federal Reserve will begin a two-day meeting on Tuesday with high expectations that it will remove financial support more quickly and begin raising interest rates around mid-2022.
For months, Fed officials have argued that inflation is “temporary” and closely tied. COVID Eventually a declining pandemic-related factor. But recently, Chairman Jerome Powell and others have pointed out that the language is no longer appropriate and is likely to be removed from future central bank communications.
Supply chain bottlenecks and booming demand are the main drivers of inflation and have been slightly mitigated.
Despite falling oil prices, final energy demand prices in November rose another 2.6% and food rose 1.2%. Transportation and warehousing increased by 1.9% and portfolio management surged by 2.9%.
Elsewhere, the price of steel scrap has skyrocketed by 10.7%, and many other costs such as gasoline, fruits, vegetables and industrial chemicals have also risen. Diesel fuel costs fell 2.6% this month, while wholesale chemicals and related products fell 1.3%.
Wholesale prices in November rose 9.6% from a year ago, the fastest pace ever.
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