Producer Price Index jumps nearly 10% in November compared with year ago

The producer price index recorded an unadjusted increase of 9.6% for the 12 months ended in November, which the Bureau of Labor Statistics says is the largest advance since 12-month data were first calculated in November 2010.

The report said the index for final demand less foods, energy, and trade services moved up 0.7% in November, the largest rise since climbing 0.8% in July.  For the 12 months ended in November, prices for final demand less foods, energy, and trade services increased 6.9%, the largest advance since 12-month data were first calculated in August 2014.

The Produce Price Index for Foods, seasonally adjusted, increased 1.2% in November, compared with a 0.3% decline in October and 0.2% in November in 2020.

From January thorugh November 2021, the PPI Index for foods is up 12.8% for the year. 

For calendar year 2020, the Bureau of Labor Statistics reported the PPI Index for food was up only 0.3% for the year.

The report said prices for iron and steel scrap rose 10.7%. The indexes for gasoline, fresh fruits and melons, fresh and dry vegetables, industrial chemicals, and jet fuel also moved higher. Conversely, prices for diesel fuel decreased 2.6%, according to the report.

In November, nearly two-thirds of the rise in prices for unprocessed goods for intermediate demand can be attributed to a 14.3% increase in the index for natural gas. Prices for crude petroleum, grains, iron and steel, nonferrous metal ores, and fresh fruits and melons also moved higher.