Producer prices spike highest level on record at 9.6%, signaling higher inflation

Fueling vehcile
(File Photo)

By, The Center Square

The Department of Labor’s Bureau of Labor Statistics released new economic data Tuesday showing that the producer price index, a key indicator of inflation, has risen 9.6% in the last 12 months, a major increase that has economists worried.

The PPI for final demand rose 0.8% in November alone. The 9.6% spike in the last year is the highest increase since the federal government began tracking this data in 2010.

“Final demand prices moved up 0.6 percent in each of the 3 prior months,” BLS said. “The index for final demand services rose 0.7 percent in November, the eleventh consecutive advance. Over half of the broad-based increase in November can be traced to prices for final demand services less trade, transportation, and warehousing, which climbed 0.6 percent. The indexes for final demand trade services and for final demand transportation and warehousing services also moved higher, rising 0.6 percent and 1.9 percent, respectively.”

The Center Square is a 501(c)(3) non-profit focused on state- and local-level government and economic reporting.