UNITED STATES NEWS

Wholesale inflation in US slowed further last month, signaling that price pressures continue to ease

Dec 13, 2023, 6:40 AM

FILE - A combine, bottom, unloads grain into a wagon, top, while harvesting soybeans, Oct. 10, 2023...

FILE - A combine, bottom, unloads grain into a wagon, top, while harvesting soybeans, Oct. 10, 2023, at a farm near Allerton, Ill. On Wednesday, the Labor Department releases producer prices data for November. The producer price index is an indicator measuring inflation at the wholesale level, hitting businesses before they pass costs along to consumers. (AP Photo/Joshua A. Bickel, File)
Credit: ASSOCIATED PRESS

(AP Photo/Joshua A. Bickel, File)

Wholesale inflation in the United States was unchanged in November, suggesting that price increases in the economy’s pipeline are continuing to gradually ease.

The Labor Department reported Wednesday that its producer price index — which tracks inflation before it reaches consumers — was flat from October to November after having fallen 0.4% the month before. Measured year over year, producer prices rose just 0.9% from November 2022, the smallest such rise since June. Excluding volatile food and energy costs, so-called core wholesale prices were unchanged from October and up 1.1% from a year ago.

Wednesday’s report reinforced the belief that inflation pressures are cooling across the economy, including among wholesale producers. The figures the government issued Wednesday, which reflect prices charged by manufacturers, farmers and wholesalers, can provide an early sign of how fast consumer inflation will rise in the coming months.

Year-over-year producer price inflation has slowed more or less steadily since peaking at 11.7% in March 2022. That is the month when the Federal Reserve began raising its benchmark interest rate to try to slow accelerating prices. Since then, the Fed has raised the rate 11 times, from near zero to about 5.4%, the highest level in 22 years.

The Fed is expected later Wednesday to announce, after its latest policy meeting, that it’s leaving its benchmark rate unchanged for the third straight meeting. Most economists believe the Fed is done raising rates and expect the central bank to start reducing rates sometime next year.

On Tuesday, the Labor Department reported that consumer prices rose just 0.1% last month from October and 3.1% from a year earlier. But core prices, which the Fed sees as a better indicator of future inflation, were stickier, rising 0.3% from October and 4% from November 2022. Year-over-year consumer price inflation is down sharply from a four-decade high of 9.1% in June 2022 but is still above the Fed’s 2% target.

Despite widespread predictions that the Fed rate hikes would cause a recession, the U.S. economy and job market have remained surprisingly strong. That has raised hopes the Fed can pull off a so-called soft landing — raising rates enough to tame inflation without sending the economy into recession.

United States News

A couple enjoy unseasonably warm weather along the shores of Lake Michigan Tuesday, Feb. 27, 2024, ...

Associated Press

Notable numbers capture the wild weather hitting much of the US this week

CHICAGO (AP) — Wild fluctuations in temperatures are being recorded in much of the United States this week, with some cities experiencing a winter weather whiplash in which they are going from record highs to severe storms to snow and freezing temperatures in a matter of days. And the whiplash does not end there. The […]

4 minutes ago

Associated Press

Man to plead guilty to helping kill 3,600 eagles, other birds and selling feathers prized by tribes

A Washington state man accused of helping kill more than 3,000 birds — including eagles on a Montana Indian reservation — then illegally selling their feathers intends to plead guilty to illegal wildlife trafficking and other criminal charges, court documents show. Prosecutors have alleged Travis John Branson and others killed about 3,600 birds during a […]

10 minutes ago

Associated Press

Indiana man gets 195-year sentence for 2021 killing of a woman, her young daughter and fiancé

PERU, Ind. (AP) — A northern Indiana man convicted in the fatal 2021 shootings of a woman, her young daughter and her fiancé has been sentenced to 195 years in prison. A Miami County judge sentenced Mitchell Page, 27, of Brookston last week to the maximum 65 years for each of three murder counts he […]

28 minutes ago

Associated Press

A work stoppage to support a mechanic who found a noose is snarling school bus service in St. Louis

ST. LOUIS (AP) — A Black mechanic for the company that provides school bus services for the St. Louis school district said he found a noose at his workstation, leading at least 100 drivers to stop work in a show of support. The work stoppage began Monday and continued Tuesday for St. Louis drivers employed […]

1 hour ago

Associated Press

UN envoy invites Syrian opponents for constitution talks in Geneva despite Russia’s opposition

UNITED NATIONS (AP) — The U.N. special envoy for Syria issued formal invitations to the Syrian government and opposition groups on Tuesday to meet in Geneva in late April to resume negotiations on revising the country’s constitution, despite opposition from Damascus’ key ally Russia. Moscow insists the Swiss city is not a neutral venue because […]

2 hours ago

Associated Press

New York doctor’s husband suing Disney for negligence in wrongful death case

ORLANDO, Fla. (AP) — The husband of a New York doctor who died shortly after dining at a Disney Springs restaurant last year accused Walt Disney Parks and Resorts of negligence in a 19-page lawsuit filed in Florida. Jeffrey Piccolo is seeking in excess of $50,000 in the wrongful death of Kanokporn Tangsuan, a doctor […]

2 hours ago

Sponsored Articles

...

DISC Desert Institute for Spine Care

Sciatica pain is treatable but surgery may be required

Sciatica pain is one of the most common ailments a person can face, and if not taken seriously, it could become one of the most harmful.

(KTAR News Graphic)...

Boys & Girls Clubs

KTAR launches online holiday auction benefitting Boys & Girls Clubs of the Valley

KTAR is teaming up with The Boys & Girls Clubs of the Valley for a holiday auction benefitting thousands of Valley kids.

...

Canvas Annuity

Interest rates may have peaked. Should you buy a CD, high-yield savings account, or a fixed annuity?

Interest rates are the highest they’ve been in decades, and it looks like the Fed has paused hikes. This may be the best time to lock in rates for long-term, low-risk financial products like fixed annuities.

Wholesale inflation in US slowed further last month, signaling that price pressures continue to ease