U.S. wholesale prices up 9.6% over last year, set new inflation record

Dec. 14 (UPI) -- The U.S. Labor Department said Tuesday wholesale prices set a new inflation record in November. The producer price index was up 9.6% over last year.

That's the largest annual increase in wholesale prices on record.

The Bureau of Labor Statistics said, "On an unadjusted basis, the final demand index rose 9.6 percent for the 12 months ended in November, the largest advance since 12-month data were first calculated in November 2010."

Consumer prices are already the highest in nearly 40 years.

The Federal Reserve starts a two-day meeting Tuesday and is expected to take steps to counter inflation, including phasing out economic aids and increasing interest rates by mid-2022.

Fed Chair Jerome Powell said recently when describing inflation the word "transitory" no longer applies. The Fed had been saying the inflation spike is transitory, caused mainly by pandemic-related supply chain problems caused by sharply increased demand for shipped goods.

The BLS said when food, energy and trade services are taken out, wholesale prices rose 0.7 percent in November -- the biggest increase since 12-month data was first calculated in August 2014.

The core rate of inflation is up 6.9% over the past 12 months. That core rate excludes energy, food and trade margins. The core rate was up 0.7% for November.

Several factors are driving inflation, including labor shortages and supply chain issues combined with increased demand.