USA producer prices rise strongly, point to firming inflation

Postado Dezembro 13, 2017

Excluding the volatile food and energy components, consumer prices ticked up 0.1 percent as prices for airline fares and household furnishing fell.

US consumer prices accelerated in November amid a rebound in gasoline prices, but declining healthcare and apparel costs curbed underlying inflation pressures.

Last month's increase in the CPI was in line with economists' expectations. By comparison, the rise was only 2.8% in October.

The fairly strong report from the Labour Department yesterday suggested a broad acceleration in wholesale price pressures, which could assuage concerns among some Federal Reserve officials over persistently low inflation. Some Fed officials worry that the factors that held down inflation early in the year could become more persistent. The 3.1 percent rise from November 2016 was the biggest 12-month gain since a matching 3.1 percent increase for the 12 months ending in January 2012.

Last month, gasoline prices surged 15.8 per cent, the biggest gain since August 2009, after dropping 4.6 per cent in October.

The Fed is expected to raise interest rates on Wednesday, encouraged by a tightening labor market and strengthening economy, which policymakers believe will boost inflation over time.

The index for final demand goods advanced 1.0% in November, the fourth consecutive increase. The prices for services grew 0.2% last month after rising 0.5% in October.

Costs of light trucks, pharmaceuticals, beef and residential electric power also moved higher.

Producer prices increased 0.4% in November, seasonally adjusted, after growing 0.4% in October, according to the U.S. Bureau of Labor Statistics. Prices for final demand transportation and warehousing increased 0.6% in November after increasing 0.8% in October.

Wholesale food prices rose 0.3 per cent in November after increasing 0.5 per cent in October. The healthcare prices have remained unchanged last month after rising 0.3% in October.