U.S. wholesale inflation increased by the most in the five months ended November, and likewise increased 3% year-over-year, the largest rise since February 2023.

The Bureau of Labor Statistics released its monthly Producer Price Index report on Dec. 12, showing that the seasonally adjusted PPI for final demand increased 3% in November on an annual basis, up from a 2.6% gain in October.

November’s year-over-year figure was more than the 2.6% increased estimate from economists, according to FactSet.

Monthly, the PPI increased 0.4%, following a 0.3% increase in October. This was driven by a 0.7% increase in final demand — the largest since rising 1.1% in February.

U.S. Producer Price Index Month-to-Month

U.S. Producer Price Index Year-Over-Year

The PPI tracks average price shifts at the wholesale level before they reach consumers.

However, core PPI — which excludes volatile food and energy categories — increased 0.1% in November month-to-month, following a a 0.3% increase in October. Year-over-year core PPI increased 3.5%.

U.S. Core Producer Price Index Month-to-Month

source: tradingeconomics.com

U.S. Core Producer Price Index Year-Over-year

source: tradingeconomics.com

The PPI report came a day after the Bureau issued its Consumer Price Index, which showed that consumer-facing inflation increased 2.7% for the 12 months ending November. Whie monthly CPI increased 0.3%, following a 0.2% rise in each of the previous four months.