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%.

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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