Friday, September 5, 2025

US Producer Prices Soar By Fastest Pace on Record

Following last week’s eye-watering CPI print that even prompted Joe Biden to quell market fears, this week’s producer prices EXPLODED by the most on record, substantially exceeding expectations and further cementing the narrative that inflation is here to stay.

Wholesale prices skyrocketed by the sharpest pace on record in November, signalling that inflationary pressures continue to be persistent throughout the entire economy. According to the Bureau of Labour Statistics, the producer price index jumped another 0.8% last month to an annualized 9.6%, surpassing forecasts calling for a 9.2% increase. Likewise, core PPI, which excludes volatile components such as food and energy increased 0.7% month-over-month, and was up 7.7% from November 2020— also a record-breaking jump.

Both goods and services prices were up last month, with energy and transportation costs leading the increase. Final demand for goods rose 1.2% from October, while services inflation jumped 0.7% last month— substantially higher than the prior month’s increase of 0.2%. Looking under the hood, prices for iron and steel scrap rose 10.7%, while the index for energy prices jumped another 2.6% last month.

Last month’s PPI increase was the largest on records dating back to 2010, and further underscores concerns that inflation is not abating anytime soon. Costs of raw materials, transportation, and labour have been rising significantly, forcing businesses to pass on the higher costs to consumers. The acceleration in prices has also created added pressure on Federal Reserve policy makers to wind down the monthly rate of bond purchases, as well as raise interest rates ahead of previous forecasts.


Information for this briefing was found via the BLS. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Goliath Resources Hits 10.60 g/t Gold Over 22.82 Metres, Highest Grade Results In Third Distinct Rock Package At Surebet Discovery

Four Countries Control the Fertilizer That Feeds the World | Sage Potash

$10,000 Gold Is Just A Question of Time | Florian Grummes

Recommended

ESGold Outlines $24.3 Million NPV For Tailings Reprocessing Project

First Majestic Encounters 711 g/t Silver Equivalent Over 8.0 Metres In Ongoing Exploration At Los Gatos

Related News

The Recession of 2022: GDP Dips 0.9%, Second Consecutive Quarterly Decline

Despite the Biden administration’s enduring efforts to change the definition of a recession and Jerome...

Thursday, July 28, 2022, 10:17:51 AM

Federal Reserve to Begin Tapering by $15 Billion in November, Stays Put on Interest Rates

The Federal Reserve has finally decided to take a more hawkish stance on its bottomless...

Thursday, November 4, 2021, 10:19:00 AM

New Home Sales on the Decline as Rising Mortgage Rates Bite

Purchases of new home sales continued to slide in June, as elevated prices and rising...

Wednesday, July 27, 2022, 12:48:00 PM

Paint Supplier PPG Set to Raise Prices AGAIN Due to Inflation That is Not so Transitory

As the Federal Reserve continues to peddle its “transitory” inflation narrative, the list of companies...

Tuesday, July 13, 2021, 04:29:00 PM

Milk Prices Set To Go Up Another 2.5% Due To Inflation

The Canadian Dairy Commission (CDC) has approved a second milk price increase this year to...

Thursday, June 23, 2022, 11:16:00 AM