U.S. producer prices increased slightly in November, with core inflation flat, as delayed government data showed limited inflationary pressure despite higher gasoline costs.
By yourNEWS Media Newsroom
U.S. wholesale inflation edged higher in November, rising at a mild pace as higher gasoline prices were largely offset by stability in underlying costs, according to a report released Wednesday by the U.S. Labor Department.
The department said its Producer Price Index, which tracks inflation before it reaches consumers, increased 0.2 percent in November from October and was up 3 percent compared with a year earlier.
The report was significantly delayed due to last fall’s 43-day federal government shutdown. The data had originally been scheduled for release on Dec. 11. The Labor Department said it will publish December’s producer price index on Jan. 30, a report that had initially been set for release Wednesday.
Gasoline prices rose sharply in November, contributing to the overall increase in wholesale prices. However, excluding the volatile food and energy categories, so-called core producer prices were unchanged from October and rose 3 percent from November 2024.
The figures suggest inflationary pressures at the wholesale level remain contained. Expectations that President Donald Trump’s sweeping import taxes would sharply accelerate inflation have not yet materialized, with their impact appearing more modest so far.
The wholesale report followed data released Tuesday showing that consumer inflation also eased. The Labor Department reported that consumer prices rose 0.3 percent in December from November and were up 2.7 percent from December 2024. While that pace remains above the Federal Reserve’s 2 percent inflation target, it marked a cooling from earlier levels.
Together, the producer and consumer price data point to steady but restrained inflation as the economy heads into the new year, despite lingering effects from higher energy costs and trade-related uncertainties.
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