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November PPI Report: Wholesale price growth cooled more than expected in November, even as U.S. consumers continued to spend at a solid pace, according to government data released Wednesday.
The Producer Price Index, a key measure of inflation at the wholesale level, increased 0.2 percent for the month on a seasonally adjusted basis.
The data was published by the Bureau of Labor Statistics. Economists surveyed by Dow Jones had projected a larger 0.3 percent increase.
November’s reading was modestly higher than October’s figure, rising by one-tenth of a percentage point.
The report suggested that pricing pressures faced by producers remained relatively contained as the month progressed.
Underlying wholesale inflation stalled in November after stripping out food and energy costs, according to new data released Wednesday.
Core producer prices recorded no change from the prior month.
Forecasters had been looking for a 0.2 percent increase. On a year-over-year basis, overall producer prices climbed 3 percent.
That reading remained notably above the Federal Reserve’s long-term inflation goal of 2 percent.
Core producer prices excluding trade services advanced 3.5 percent from a year earlier.
The Bureau of Labor Statistics said the annual gain was the largest since March 2025.
Higher prices for goods pushed wholesale inflation upward in November, with energy playing an outsized role, according to government data released Wednesday.
Goods prices rose 0.9 percent during the month. Energy costs surged 4.6 percent and accounted for more than 80 percent of the overall increase.
Service prices showed no monthly movement. At the consumer level, spending activity remained solid.
Retail sales increased 0.6 percent in November, based on seasonally adjusted Commerce Department data that does not account for inflation.
The result came in above the 0.4 percent gain expected by economists surveyed by Dow Jones.
Excluding automobile sales, receipts rose 0.5 percent. That figure also exceeded the 0.3 percent consensus estimate.
Retail sales advanced across a wide range of categories in November, reflecting broad consumer demand, according to federal data released Wednesday.
Spending climbed by more than 1 percent at auto and auto parts dealers. Home improvement and garden retailers posted similar gains.
Gas station sales also rose sharply. Sporting goods stores and various other specialty outlets recorded increases above the 1 percent mark.
On an annual basis, total retail sales increased 3.3 percent.
That growth rate exceeded the 2.7 percent rise in consumer prices recorded for the month.
Economic data releases remained behind schedule as the Bureau of Labor Statistics continued to catch up after last year’s government shutdown.
Retail sales figures were also delayed. Market reaction to the reports was muted. U.S. equity futures edged lower. Treasury yields held near flat levels.
Investors continued to price in virtually no probability of an interest rate change when the Federal Reserve meets later this month.
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