The Producer Price Index jumped 9.6% in November from the same month last year, the largest year-over-year increase since records began keeping in 2010 .
The PPI rose 0.8% in the month of November 2021.
Prices climbed a further 6.9% excluding food and energy costs, according to the Bureau of Labor Statistics. The PPI tracks changes in the selling price of domestically produced goods and is a key indicator of inflation.
At the same time, consumer prices rose 6.2% in October from the previous year, the biggest increase in over 30 years.
The Biden administration initially claimed that the rise in inflation would likely be “transient” as the global economy recovers from the shocks induced by the coronavirus pandemic. However, Federal Reserve Chairman Jerome Powell told lawmakers in November that the word “transitional” should no longer be used to describe current inflation.
“We tend to use [transitory] to mean that it will not leave a permanent mark in the first of higher inflation. I think it’s probably a good time to take that word out and try to make it clearer what we mean, ”Powell told the Senate Banking Committee. “It is clear that the risk of more persistent inflation has increased.”
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