The Bureau of Labor Statistics reported Friday that wholesale prices overall rose more than expected in November.
However, for the first time since at least 2020, all four supply-chain stages leading to final production showed price declines in the month. Although year-over-year wholesale prices throughout the supply chain rose, the monthly decline across all four stages could be a sign of wholesale inflation finally having peaked.
The producer price index (PPI), a measure of the prices that companies get for finished goods in the marketplace increased 0.3% for the month and 7.4% from a year ago. Economists surveyed by Dow Jones had been looking for a 0.2% gain.
Goods inputs for Stage 4 intermediate demand, measuring the products purchased by industries primarily producing output sold to final demand, such as RV manufacturers, fell 0.3% in November after falling 0.2% in October. Year-over-year Stage 4 demand rose 6.9%, down from 7.7% in September.
Goods inputs for Stage 3 intermediate demand, measuring suppliers to Stage 4 producers such as RV manufacturers fell 0.9% in November after falling 1.5% in October. Overall, year-over-year demand rose 8.4%, down from 9.1% in October and 10.8% in September.
The most significant change came in Stage 2 intermediate demand. Goods inputs for suppliers to Stage 3 suppliers saw prices fall 3.4% in November after a sharp 10.9% decline in October. Overall, Stage 2 intermediate demand rose just 3.8% year-over-year, down from 7.3% in October and well below the 20.4% increase registered in August.
Finally, goods inputs for Stage 1 demand fell 1.2% in November after a 0.3% decline in October. Overall, demand rose 7.6% year-over-year, down from 9.2% in September.
