U.S. Producer Price Index Rises 0.4% in November, Marking Strong Annual Increase

The U.S. Producer Price Index (PPI) for final demand increased by 0.4% in November, following a 0.3% rise in October and a 0.2% increase in September, according to the U.S. Bureau of Labor Statistics.

Over the 12 months ending in November, the PPI rose 3.0%, marking the largest annual gain since February 2023, when it reached 4.7%.

The November increase in final demand prices was primarily driven by a 0.7% rise in goods prices, which accounted for nearly 60% of the overall increase. The services sector saw a more modest 0.2% increase.

Within goods, the 0.7% rise was the largest since February, with notable gains across a range of sectors. In services, the 0.2% increase marked the fourth consecutive monthly rise, with trade services contributing significantly, up by 0.8%. However, transportation and warehousing services saw a decline of 0.5%.

READ MORE:

Will the Fed Cut Rates as Inflation Progress Slows?

Excluding food, energy, and trade services, the core PPI rose 0.1% in November, following a 0.3% increase in October. On a year-over-year basis, the core PPI rose 3.5%.

Unemployment claims for the week also saw a higher-than-expected figure, with 242,000 new claims compared to the expected 221,000. Bitcoin’s immediate response to the PPI and unemployment data followed the market’s assessment of these inflationary signals.

Alexander Stefanov

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.