(Bloomberg) — US producer prices rose in November by more than forecast, driven by services and underscoring the stickiness of inflationary pressures that supports Federal Reserve interest-rate increases into 2023.
The producer price index for final demand climbed 0.3% for a third month and was up 7.4% from a year earlier, Labor Department data showed Friday. The monthly gains for October and September were revised higher.
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The move reversed about half of its 12-basis-point drop on Nov. 5, when the Nasdaq 100 index suffered its biggest slide since March 2020.
The U.S. midterm elections sparked declines for shares of large U.S. technology companies and oil prices that fueled gains for U.S. government bonds, sending yields to the lowest levels since early September.
Hassett was speaking shortly after the latest PCE inflation report showed that core price gains, excluding food and energy, clocked a 3.1% year-on-year pace for September.
Concerns regarding AI companies' ability to handle inflation drove the 10-year Treasury under 5%, but with data still running hot, could yields turn upward?
The Federal Open Market Committee's voting history heading into previous elections might shed light on how it approaches this week's decision.
