By Greg Robb
Annual rate softens to 7.4% from peak of 11.7% in March
The number: U.S. wholesale prices rose 0.3% in November, the Labor Department said Friday.
Economists polled by The Wall Street Journal has forecast a 0.2% gain.
This is the third straight 0.3% monthly gain in the PPI index. Inflation in October and September was also revised up from the prior estimate of a 0.2% gain.
The core producer price index, which excludes volatile food, energy and trade prices, rose 0.3% in November, up from a 0.2% gain in the prior month.
The increase in producer prices over the past 12 months slowed to 7.4% gain from 8.1% in the prior month. This is down from the peak of 11.7% in March.
Over the past year, core prices rose 4.9%, down from 5.4% in October.
Key details: The cost of energy fell 3.3% in November after a 2.3% gain in the prior month.
Food prices jumped 3.3% after a 0.8% increase in the prior month.
The cost of trade services jumped 0.7% in November after two straight monthly declines.
Big picture: Although hotter than expected in November, inflation at the wholesale level is showing steady deceleration from the peak in March.
The market is more focused on consumer price inflation report, which will be released next Tuesday, one day before the Fed’s decision on interest rates.
Market reaction: Stock futures turned lower on the upside surprise to the monthly gain. The yield on the 10-year Treasury note jumped to 3.5%.
(END) Dow Jones Newswires
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