WASHINGTON, Jan 14 (Reuters) – U.S. producer prices picked up slightly in November amid a surge in the cost of gasoline, but businesses appeared to be absorbing some of the \u200btariffs on imports, with trade margins compressing.<\/p>\n
The Producer Price Index for final demand \u200crose 0.2% in November after edging up 0.1% in October, the Labor Department’s Bureau of Labor Statistics said on Wednesday. Economists polled by Reuters had forecast the PPI rising 0.2%.<\/p>\n
Sign up here.<\/a><\/p>\n In the 12 months through November, the PPI advanced 3.0% after increasing 2.8% in October. The \u200creports were delayed by the 43-day shutdown of the government. Though \u200bthe longest shutdown on record prevented the collection of data to produce the Consumer Price Index for October, the government collected information for the PPI for that month, but \u200dwith a delay.<\/p>\n The shutdown has made the CPI data a bit noisy. The government reported on Tuesday that the CPI increased<\/a> 0.3% in December, lifted by food and rents. Consumer prices rose 2.7% year-on-year \u2060in December.<\/p>\n Producer goods prices rebounded 0.9%, the largest increase since February 2024, after slipping \u200d0.4% in October. A 4.6% jump in energy prices accounted for more than 80% of the increase \u200cin producer \u200cgoods prices. Food prices were unchanged after dropping 0.4% in October. Excluding food and energy, producer goods prices climbed 0.2% after rising 0.4% in October.<\/p>\n Wholesale services prices were unchanged after advancing 0.3% in October. Margins for trade services dropped 0.8%. Business absorbing some \u2060of President Donald Trump’s \u2060sweeping import tariffs \u200bhave prevented a sharp increase in inflation.<\/p>\n Prices for bundled wired telecommunications access services soared 4.6% in November. There were also increases in the costs machinery and vehicle wholesaling as well as portfolio \u200dmanagement and outpatient care.<\/p>\n The Federal Reserve is expected to keep its benchmark overnight interest rate in the 3.50%-3.75% range at its January 27-28 meeting. An escalation in tensions between<\/a> Fed Chair Jerome Powell and \u200bTrump has left most economists not expecting a rate \u200dcut before Powell’s term ends in May. The Trump administration has opened a criminal investigation into Powell, which \u200bthe Fed chief called a “pretext” to influence rates.<\/p>\n Reporting by Lucia Mutikani; Editing by Andrea Ricci<\/p>\n Our Standards: The Thomson Reuters Trust Principles., opens new tab<\/a><\/p>\n