The latest snapshot of inflationary pressures within the United States economy has finally been released, revealing a modest uptick in wholesale prices for November. The report's publication was significantly delayed due to last autumn's protracted federal government shutdown.
Key Figures from the Delayed Report
According to the US Labor Department, the Producer Price Index (PPI), which tracks inflation before it impacts consumers, increased by 0.2% in November compared to October. On an annual basis, the index was 3% higher than in November 2024.
These figures, which were originally scheduled for release on 11 December, were held back by the 43-day government closure. The department has now confirmed it will publish December's PPI data on 30 January, replacing the update that was meant to be issued this Wednesday.
Volatile Energy Masks Stable Core Inflation
A sharp rise in gasoline prices during November contributed to the overall increase. However, when the volatile food and energy sectors are excluded, the picture changes. The so-called core producer prices showed no change from October's level, although they were still up 3% year-on-year.
This comes a day after separate data indicated consumer price inflation had cooled slightly in December, though it remains above the Federal Reserve's 2% target.
Trade War Impact More Muted Than Forecast
The report provides fresh context for assessing the economic impact of former President Donald Trump's sweeping import tariffs. While these measures were widely predicted to drive a sharp acceleration in inflation, their effect on wholesale prices to date has been more modest than many analysts anticipated.
The overall data suggests that, for now, inflationary pressures at the producer level are being contained, despite significant disruptions in trade policy and the recent political impasse that delayed the economic data pipeline.
