November’s wholesale inflation in the US remained stable, indicating that the economy’s underlying price increases are continuing to taper off.
The producer price index, which measures inflation before it reaches consumers, was flat from October to November, the Labour Department stated on Wednesday, following a 0.4% decline the previous month. Producer prices increased by merely 0.9% year over year from November 2022, the least amount since June.
So-called core wholesale prices, which do not include the price of volatile food and energy, increased by barely 2% from a year earlier and remained stable from October. This represents the lowest annual increase since January 2021. Between October and November, the price of goods remained constant due to a 4.1% decrease in petrol costs. Prices for services were likewise fixed.
The data released on Wednesday supported the notion that wholesale producers are among the sectors of the economy where inflation pressures are decreasing. The numbers, which represent the prices that producers, farmers, and wholesalers charge, can give an early indication of how quickly consumer inflation will increase in the upcoming months.
