inflation was hotter than previously thought in September.<\/a> The annual rate was revised higher to 3% from 2.7%.\n <\/p>\n\n When excluding food and energy, categories that can have abnormal price shifts, core PPI rose 0.3% in October and prices were flat in November; however, the annual rates firmed to 2.9% in October and 3% in November.\n <\/p>\n
\n The latest PPI also provided a potential glimpse at how businesses are navigating higher costs that they\u2019re paying because of President Donald Trump\u2019s sweeping tariffs on imported goods.\n <\/p>\n
\n Trade services, which measures profit margins for wholesalers and retailers, were down by 0.8% in both October and November, a possible indication that businesses were absorbing higher costs versus fully passing them along to customers.\n <\/p>\n
\n As the labor market has weakened, wage growth has slowed, and economic disparities have grown wider, some businesses have sought to cut prices \u2013 versus raising them further \u2013 because a wider swath of Americans is struggling with affordability.\n <\/p>\n
\n When excluding food, energy as well as trade services \u2013 which also can be volatile \u2013 the underlying trajectory of wholesale inflation was even more concerning: Prices shot 0.7% higher in October and rose 0.2% in November, lifting the annual rate to 3.4% in October and then 3.5% in November.\n <\/p>\n
\n That\u2019s the highest annual rate for PPI excluding energy, food and trade services in eight months.\n <\/p>\n
\n \u201cPremature declarations of a peak in tariff-related inflation look rather unconvincing after parsing the data,\u201d Joe Brusuelas, RSM US chief economist, wrote in an email to CNN.\n <\/p>\n
\n The latest PPI report offers some signals for the Federal Reserve\u2019s preferred inflation gauge, as several PPI data points feed in to the Personal Consumption Expenditures price index.\n <\/p>\n
\n The CPI data during the fourth quarter and the latest PPI data point to the PCE price index edging further from the Fed\u2019s 2% target rate, Pantheon\u2019s Tombs wrote.\n <\/p>\n
\n The October and November PCE report, which also will include the latest data on spending, is scheduled to be released Thursday, January 22.\n <\/p>\n","protected":false},"excerpt":{"rendered":"Price hikes picked up speed for US-based businesses toward the end of last year, a potential signal that…\n","protected":false},"author":2,"featured_media":408909,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[43,44,41,39,42,40],"class_list":{"0":"post-408908","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-headlines","8":"tag-headlines","9":"tag-news","10":"tag-top-news","11":"tag-top-stories","12":"tag-topnews","13":"tag-topstories"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/408908","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=408908"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/408908\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/408909"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=408908"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=408908"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=408908"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}