U.S. price index gauge producer price index increased more than expected in November amid supply chain constraints. The increase led to the biggest annual gain in 11 years supporting the view of persistence inflation.
The producer price index for final demand jumped 0.8% last month against forecasted 0.5%. In terms of the last 12 months PPI rose 9.6% against the forecasted 9.2%.
PPI excluding volatile food and energy rose 7.7% on a annual basis against forecasted 7.2%.
The high PPI number came in after last friday data showed consumer price index surged the most since 1982 in November.
Together with soaring inflation and supply chain bottleneck will likely push Federal Reserves to accelerate tapering and hike rates. The FED is expected to lay out roadmap for rates hike in 2022 during its two day policy meeting on Wednesday.
