US wholesale prices were unchanged in November, according to government data published on Wednesday (Dec 13), as a sharp drop in the energy index prevented an overall increase in producer costs.

The lack of change in the monthly producer price index (PPI) in November followed a revised 0.4 per cent decline in October, the Labor Department announced.

This was slightly below market expectations, according to Briefing.com.

“PPI inflation surprised to the downside in November, across measures,” High Frequency Economics chief US economist Rubeela Farooqi wrote in a note to clients.

The index for final demand energy fell by 1.2 per cent last month after a sharp decline a month earlier, while food saw a 0.6 per cent monthly rise, and trade ticked down 0.2 per cent.

Stripping out food, energy, and trade, PPI increased by 0.1 percent month-on-month.

GET BT IN YOUR INBOX DAILY

Start and end each day with the latest news stories and analyses delivered straight to your inbox.

Sign UpVIEW ALL

“The data confirm the downtrend in inflation although consumer prices are moving lower more gradually,” said Farooqi.

She added that there was “nothing” in the PPI data that would change the likelihood of the US Federal Reserve voting to hold interest rates unchanged. AFP