The Labor Department released a report on Tuesday showing U.S. producer prices increased by more than expected in the month of November.
The report said the producer price index for final demand advanced by 0.8 percent in November after climbing by 0.6 percent in October. Economists had expected producer prices to rise by 0.5 percent.
With the stronger than expected monthly increase, the annual rate of producer price growth accelerated to 9.6 percent in November from 8.8 percent in October.
The Labor Department said the year-over-year spike reflected the largest advance since 12-month data were first calculated in November 2010.
The bigger than expected monthly increase in prices was partly due to a continued surge in energy prices, which shot up by 2.6 percent in November after soaring by 5.3 percent in October.
The Labor Department said food prices also jumped by 1.2 percent in November after dipping by 0.3 percent in the previous month.
Excluding food, energy and trade prices, core producer prices increased by 0.7 percent in November after rising by 0.4 percent in October.
The annual rate of core producer price growth accelerated to 6.9 percent in November from 6.3 percent in October, reaching the highest level since 12-month data were first calculated in August 2014.
The report also said prices for services climbed by 0.7 percent in November after inching up by 0.2 percent in October, with over half of the advance due to a 0.6 percent increase in prices for services less trade, transportation, and warehousing.
Prices for transportation and warehousing services also jumped by 1.9 percent, while prices for trade services rose by 0.6 percent.
“While we continue to expect producer prices to reach an apex in Q4, persistent supply headwinds will keep input and transportation costs sticky and only allow for a gradual moderation in price pressures,” said Mahir Rasheed, U.S. Economist at Oxford Economics.
Last Friday, the Labor Department released a separate report showing consumer prices in the U.S. increased at the fastest annual rate in nearly 40 years in November.
The report showed the annual rate of growth in consumer prices accelerated to 6.8 percent in November from 6.2 percent in October, reflecting the biggest jump since June of 1982.
Core consumer prices, which exclude food and energy prices, were up by 4.9 percent compared to the same month a year ago, showing the biggest annual increase since June of 1991.
The faster annual growth came as consumer prices climbed by 0.8 percent in November following a 0.9 percent advance in October. Economists had expected consumer prices to increase by 0.7 percent.
Excluding food and energy prices, core consumer prices rose by 0.5 percent in November after climbing by 0.6 percent in October. The increase in core prices matched economist estimates.
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