Wholesale prices of consumer goods increased by 9.6% from November 2020 to November 2021. That figure includes a 0.8% price increase in November. The increase broke the year-over-year Producer Price Index (PPI) record.
It also sent an unmistakable signal that inflation will remain a problem for some time. (RELATED: ‘Surprised’ Biden Unsure of How to Deal With Skyrocketing Inflation)
Economists polled by Reuters had predicted a 9.2% increase in the annual change of the PPI.
As CNBC reports:
The Labor Department’s record keeping for the headline number goes back to November 2010, while the core calculation dates to August 2014.
Those numbers come with headline consumer prices running at their fastest pace in nearly 40 years and core inflation the hottest in about 30 years.
Demand for goods continued to be the bigger driver for producer prices, rising 1.2% for the month, a touch slower than the 1.3% October increase. Final demand services inflation ran at a 0.7% monthly rate, much faster than the 0.2% October rate and a sign that the services side could be catching up in prices after lagging through much of the recovery.
Supply chain bottlenecks and surging demand have been the primary drivers of inflation, and have eased only marginally.