The Producer Price Index for final demand products registered its largest advance since its inception in 2010 in November with 9.6% year-over-year rise, according to the latest data from the US Bureau of Labor Statistics.
The rise of this proxy for inflation was driven by the energy sector, which was up 2.6% from the previous month followed by the transportation and warehousing sector at 1.9%.
Total final demand was up 0.8% versus the previous month. The skyrocketing prices of domestically produced goods have led the markets to express their concern over inflation, long dismissed as transitory by the Federal Reserve.
The price of unprocessed goods for intermediate demand saw a spectacular rise of 52.5% year-over-year and a month-over-month increase of 4.8% in November driven largely by a 14.3% increase in the index for natural gas.
Year-over-year liquefied petroleum gas registered the most impressive rise at 153%.