The Producer Price Index for final demand was unchanged during November (1.1% y/y) following a 0.4% October rise. A 0.2% gain had been expected in the Action Economics Forecast Survey. Producer prices excluding food & energy declined 0.2% last month (+1.3% y/y) after rising 0.3%. A 0.1% uptick had been expected. The PPI excluding food, beverages and trade services, another measure of underlying price inflation, held steady last month (1.3% y/y) after a 0.1% October gain.

Food prices jumped 1.1% (3.2% y/y) and added to a 1.3% October increase. Higher prices for beef & veal led the increase as they surged 5.4% (4.8% y/y), and dairy product costs improved 1.6% (7.7% y/y). A 4.1% weakening (+4.6% y/y) in fruit & melon prices tempered that increase while bakery product prices rose 0.4% (0.7% y/y).

Final demand energy prices rose 0.6% (-4.0% y/y) as gasoline prices increased 2.3% (-3.7% y/y) and natural gas prices rose 0.5% (1.8% y/y). Offsetting these increases was a 1.1% decline (-15.1% y/y) in the cost of heating oil and the cost of electric power fell 0.6% (+1.5% y/y).

Finished consumer goods prices less food & energy rose 0.2% (1.6% y/y) after a 0.1% uptick. Core nondurable goods prices increased 0.3% (2.0% y/y) and durable product prices improved a minimal 0.1% (0.9% y/y). Passenger car prices rose 0.1% (0.4% y/y) and light truck costs rose 0.5% (-0.6% y/y). Appliance prices held steady (3.3% y/y). Private capital equipment prices rose 0.1% (1.5% y/y).

Services prices for final demand declined 0.3% (+1.4% y/y) and reversed October's increase. Trade services prices fell 0.6% (+1.4% y/y) owing to a 0.7% weakening (+1.2% y/y) in the cost of finished goods trade. Transportation & warehousing prices rose 0.4% (0.2% y/y) but excluding these costs, prices declined 0.1% (+1.7% y/y).

The cost of construction held steady (3.7% y/y) last month following a 0.4% jump. Private construction prices held steady (3.6% y/y) but public construction costs eased 0.1% (3.8% y/y).

Intermediate product prices rose 0.2% (-2.9% y/y) as materials & component prices for manufacturing were off 0.2% (-3.6% y/y).

The PPI data can be found in Haver's USECON database. Further detail can be found in PPI and PPIR. The expectations figures are available in the AS1REPNA database.