Economists polled by Reuters they had forecast the PPI to rise 0.2% and 7.2% year-on-year.
The report is known ahead of the Fed’s policy meeting next Tuesday and Wednesday. Fed Chairman, Jerome Powellsaid last month that the central bank could slow its rate hikes “as soon as December.”
The Fed is in the midst of the fastest rate hike cycle since the 1980s.
The inflation is gradually slowing as supply chains relax and demand for goods declines. The Supply Management Institute reported last week that its measure of the prices paid by factories for goods fell to a 2-1/2-year low in November.
But the shift in spending towards services means that headline inflation will remain high for a while. Some of the price pressures are seen to come from the labor market, with wage growth accelerating in November.
That has left economists hoping that the Fed continue to tighten monetary policy and raise its benchmark rate to a level above the recently projected 4.6%, where it could stay for some time. The central bank has increased the cost of credit by 375 basis points this year from almost zero to a range of 3.75%-4.00%.
Excluding the volatile components of food, energy and commercial services, producer prices increased 0.3% in November. The so-called core PPI advanced 0.2% in October. In the 12 months to November, the core PPI rose 4.9% after rising 5.4% in October.
Source: Ambito
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