US Producer Prices Rise 7.4% in November, Exceeding Market Expectations

[Asia Economy New York=Special Correspondent Joselgina] The U.S. Department of Labor announced on the 9th (local time) that the Producer Price Index (PPI) for November rose 7.4% compared to the same month last year. The increase was smaller than in October (8.1%), confirming a slowdown for five consecutive months. However, it exceeded market expectations (7.2%).

The PPI rose 0.3% compared to the previous month, maintaining the same level for three consecutive months. This also surpassed market expectations (0.2%).

The core PPI, excluding energy and food, rose 0.3% month-over-month and 4.9% year-over-year. The year-over-year increase slowed compared to October (5.4%), but the month-over-month increase was slightly higher.

Major foreign media outlets evaluated the PPI exceeding market expectations as a sign of inflation entrenchment. With key indicators, including the labor market, showing solid confirmation recently, there is a growing outlook that the central bank, the U.S. Federal Reserve (Fed), will continue stronger tightening next year than previously expected.