U.S. producer prices accelerated in November, with its largest annual core good price increase in eight months, signaling that inflation pressures have not fully faded.

The Bureau of Labor Statistics shared its monthly Producer Price Index report on Jan. 14, which showed that November’s PPI for final demand rose 0.2% month-to-month after a 0.1% uptick in October and 0.6% jump in September. Year-over-year, November prices increased 3.0%, topping market expectations of 2.7%.

November’s monthly increase was largely driven by goods prices, which jumped 0.9% for its biggest gain since early 2024. Energy was the biggest factor as more than 80% of the overall monthly gain in goods prices was due to 4.6% jump fuel-related costs. Meanwhile, services prices were flat, signalling that inflation pressures are concentrated in specific market sectors.

U.S. Producer Price Index Month-Over-Month

U.S. Producer Price Index Year-Over-Year

Core Inflation

Core producer prices — which exclude volatile, food, energy and trade services — increased 0.2% in November after a 0.7% jump in October. On a 12-month basis, core prices increased 3.5% for its largest jump since March 2025.

U.S. Core Producer Price Index Month-Over-Month

U.S. Core Producer Price Index Year-Over-Year