Wholesale inflation in the U.S. was unchanged in November, the Associated Press reports, suggesting that price increases in the economy’s pipeline are continuing to gradually ease.
The Labor Department reported today that its producer price index — which tracks inflation before it reaches consumers — was flat from October to November after having fallen 0.4% the month before. Measured year over year, producer prices rose just 0.9% from November of 2022, the smallest such rise since June.
Excluding volatile food and energy costs, so-called “core” wholesale prices were unchanged from October and were up just 2% from a year ago — the mildest year-over-year increase since January 2021. Among goods, prices were unchanged from October to November, held down by a 4.1% drop in gasoline prices. Services prices were also flat.
Today’s report reinforced the belief that inflation pressures are cooling across the economy, including among wholesale producers. The figures, which reflect prices charged by manufacturers, farmers, and wholesalers, can provide an early sign of how fast consumer inflation will rise in the coming months.
Year-over-year producer price inflation has slowed more or less steadily since peaking at 11.7% in March 2022, the month when the Federal Reserve began raising its benchmark interest rate to try to slow accelerating prices.
