Prices to US producers rose more than expected in November, due to persistent supply restrictions, marking the largest annual increase since the series changed 11 years ago, and supported the view that inflation could remain uncomfortably high. a time.

The Producer Price Index (PPI) for final demand shot up 9.6% in the last 12 months ending in November. This is the largest increase since November 2010 and remains at the 8.8% level recorded in October.

In monthly terms it rose 0.8% last month, after advancing 0.6% in October. The generalized increase in PPI was led by a 0.7% rise in services, which followed a 0.2% increase in October.

Economists polled by Reuters had expected the PPI to rise 0.5% monthly and 9.2% annually.

Excluding the volatile components of food, energy and commercial services, producer prices increased 0.7 percent. The so-called underlying PPI advanced 0.4% in October.

In the 12 months to November, the underlying PPI shot up to 6.9%, the largest advance since the 12-month data was first calculated in August 2014, and after 6.3% in October.

The Labor Department report followed last week’s news that annual consumer prices had their biggest increase in November since 1982.

Inflation complicates President Joe Biden’s economic agenda, which includes a $ 1.75 trillion social and climate policy package that is stuck in the US Congress.

Strong price pressures, coupled with the tightening labor market, will likely cause the Federal Reserve to announce that it will accelerate the reduction of its bond purchases.

“These data support the Fed’s shift toward a more rapid reduction in stimulus that will likely precede a more accelerated tightening of monetary policy in 2022,” said Rubeela Farooqi, chief US economist at High Frequency Economics.

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