The producer price index rose 0.4% in November after gaining 0.4% in October, the Labor Department reported on Tuesday.
Economists polled by IFR Markets had expected the PPI to have risen by 0.3% last month.
The core rate, minus the food and energy components of the PPI, rose 0.3% in November after rising 0.4% in October.
Economists surveyed by IFR Markets had expected the core rate to have risen 0.2% last month.
Year over year prices show acceleration from October. Overall PPI is now up 3.1% y/y, the highest since January 2012, ex-food and energy it is up 2.4% y/y, and ex-food, energy and trade services saw the highest on record of up 2.4% y/y.
“The November PPI data were stronger-than-expected, providing support to the likely FOMC rate hike this week and for those that see three to four rate hikes next year,” Markit News International reported.
