Shutdown-delayed report: Producer prices rise 0.2% in November amid gasoline jump and tariff effects
Shutdown-delayed Labor Department report shows producer prices rose 0.2% in November and 3% year-over-year; core PPI was flat as gasoline climbed and December data awaits.
Overview
The Labor Department's shutdown-delayed PPI showed wholesale prices rose 0.2% in November and 3% year-over-year, a modest increase despite expectations of sharper inflation from President Donald Trump’s tariffs.
Core wholesale prices, excluding food and energy, were unchanged month-to-month but up 3% annually; gasoline surged in November, lifting headline PPI.
Data suggest many wholesalers and retailers absorbed tariff-related cost increases; trade services fell, indicating businesses may be shielding consumers from higher import taxes.
Revisions raised September's annual PPI rate to 3% from 2.7%; excluding food, energy and trade services, wholesale prices climbed sharply, signaling persistent underlying inflation pressures.
Consumer inflation cooled in December with CPI up 0.3% monthly and 2.7% annually, but still above the Fed's 2% target; December PPI is scheduled for Jan. 30.
Analysis
Center-leaning sources frame this coverage as restrained but consumer-focused, using mild evaluative words ('modestly', 'sticky', 'pinched'), prioritizing Labor Department data and economists who stress household pain and persistent inflation, and curating quotes about lingering price pressures and tariff impacts. The structure foregrounds numbers, then consumer consequences and expert interpretation.
Sources (17)
FAQ
The Producer Price Index (PPI) measures the average changes in selling prices received by domestic producers for their output.
The PPI is calculated using a modified Laspeyres formula, which is a weighted average of price relatives (current prices divided by base period prices) with fixed base period quantities.
Producer prices rose 0.2% in November month-over-month and 3% year-over-year; core PPI excluding food and energy was flat month-to-month but up 3% annually.
The report was delayed due to a government shutdown.
Tariff-related cost increases were largely absorbed by wholesalers and retailers, while a surge in gasoline prices lifted the headline PPI.
History
13 sources