U.S. Producer Prices Increase Modestly in November

12/11/2020

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Lucia Mutikani | Reuters

WASHINGTON (Reuters) -U.S. producer prices barely rose in November, supporting views that inflation would remain benign in the near term as a flare up in new COVID-19 infections restrains the labor market and demand for services.

The producer price index for final demand edged up 0.1% last month after increasing 0.3% in October, the Labor Department said on Friday. That was the smallest gain since April. In the 12 months through November, the PPI advanced 0.8% after increasing 0.5% in October.

Economists polled by Reuters had forecast the PPI gaining 0.2% in November and rising 0.8% on a year-on-year basis.

A 0.4% increase in the price of goods accounted for the rise in the PPI. Goods increased 0.5% in October. Services were unchanged after rising 0.2% in October.

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