Wholesale inflation jumps more than expected in November as price pressures remain sticky

Published On Dec 12, 2024, 9:02 AM

Wholesale inflation in the U.S. rose unexpectedly in November, with the Producer Price Index (PPI) increasing by 3% year-over-year, up from 2.4% in October. This rise was higher than the projected 2.6%. Month-over-month prices also increased, further indicating persistent inflation. The core PPI, excluding food and energy, also saw a year-over-year increase of 3.4%. These inflation readings suggest that while there has been progress in controlling inflation over recent years, challenges remain, prompting investors to reconsider the future path of Federal Reserve rate cuts.

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The rise in wholesale inflation signals ongoing price pressures that are likely to impact consumer prices as well, which could lead to a more cautious approach by the Federal Reserve in terms of rate cuts. Investors might want to focus on sectors sensitive to interest rate movements as the Fed may reconsider its stance on rate reduction in 2025 due to persistent inflation.

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