US producer prices exceed expectations in November

[WASHINGTON] US producer prices increased more than expected in November as supply constraints persisted, leading to the biggest annual gain since the series was revamped in 2010, supporting views that inflation could remain uncomfortably high for sometime.

The producer price index for final demand jumped 0.8 per cent last month after advancing 0.6 per cent in October, the Labor Department said on Tuesday. In the 12 months through November, the PPI shot up 9.6 per cent. That was the largest gain since November 2010 and followed an 8.8 per cent increase in October.

Economists polled by Reuters had forecast the PPI climbing 0.5 per cent on a monthly basis and surging 9.2 per cent year-on-year.

REUTERS