U.S. producer inflation came in hotter than expected in November, adding to concerns that price pressures remain sticky.
The Producer Price Index (PPI) rose 3.0% year-over-year in November, surpassing market forecasts and marking an acceleration from the previous month. The reading suggests that upstream inflation pressures persist, even as consumer inflation has shown signs of cooling.
A stronger-than-expected PPI may complicate the outlook for Federal Reserve rate cuts, as higher producer costs can eventually flow through to consumer prices. Markets are now reassessing the pace and timing of potential monetary easing, particularly if elevated input costs persist into early 2026.