US Inflation Shoots Higher In November's Producer Price Index As Egg Costs Skyrocket

A new government report has danger signs for the U.S. economy as inflation grew more than expected in November.

The Producer Price Index rose a seasonally adjusted 0.4% in November the U.S. Bureau of Labor Statistics reported Thursday.

The Dow Jones consensus estimate was a 0.2% increase for wholesale goods.

The rate was up 3.0 percent for the 12 months that ended in November. It is the largest rise since moving up 4.7 percent for the 12 months ended February 2023.

Nearly 60 percent of the rise in final demand prices in November was blamed on a 0.7 percent increase in the index for final demand goods. Prices for final demand services
moved up 0.2 percent. most of the increase was tied to food prices.

Egg prices jumped almost 55% in November. Prices for fresh and dry vegetables, fresh fruits and melons, processed poultry, non-electronic cigarettes and residential electric power also increased.

In contrast, the index for oilseeds declined 4.7 percent. Prices for diesel fuel and for primary basic organic chemicals also decreased.

The index for final demand less food, energy, and trade services inched up 0.1 percent in November after rising 0.3 percent in October. For the 12 months that ended in November, prices for final demand less food, energy, and trade services advanced 3.5 percent.