Wholesale Inflation Surges in November, Driven by Food Costs

The Producer Price Index rose 0.4% last month, exceeding expectations, with food prices—especially eggs—contributing significantly to the increase.

The Producer Price Index (PPI) increased by 0.4% in November, double the 0.2% forecasted by economists, marking a 3% year-over-year rise, the highest since February 2023.
Food prices surged 3.1% in November, with egg prices skyrocketing 54.6%, largely due to disruptions caused by avian flu outbreaks.
Core PPI, excluding food and energy, rose 0.2% month-over-month, aligning with expectations, while a narrower measure excluding trade services rose just 0.1%.
Economists expect the Federal Reserve to proceed with a third consecutive interest rate cut next week, despite the inflation uptick, as labor market indicators show signs of softening.
The PPI report follows a Consumer Price Index increase to 2.7% annually in November, signaling that inflation progress has slowed but remains on a gradual path toward the Fed's 2% target.