Wholesale inflation was softer than expected, retail sales moved higher in November

According to economic data released on Wednesday, while wholesale prices rose less than expected, consumers maintained an intense purchasing pace in November.

producer price indexIt rose just 0.2% month over month, a measure of final demand prices that producers get from the market, according to seasonally adjusted figures from the Bureau of Labor Statistics. Although this was a tenth of a percentage point higher than October, it was below the Dow Jones consensus for a 0.3% increase.

Core PPI, excluding food and energy, remained flat against expectations of a 0.2% increase on a monthly basis.

Although monthly readings were weak, headline PPI rose 3% from a year ago, well above the Federal Reserve’s 2% target. Core PPI, excluding business services, rose 3.5% annually, the largest 12-month move since March 2025, according to the BLS.

Most of the PPI increase was due to a 0.9% increase in goods prices; More than 80% can be attributed to a 4.6% increase in energy prices. Service prices remained flat.

On the consumer side, retail sales It rose 0.6% in November, according to seasonally adjusted but not inflation-adjusted figures from the Department of Commerce. Economists surveyed by Dow Jones had expected a 0.4 percent increase. Excluding autos, sales rose 0.5% compared to the 0.3% forecast.

November gains were broad-based; Motor vehicle and parts dealers, building material and garden centers, gas stations, sporting goods stores and miscellaneous retail stores all saw gains in excess of 1%.

On a yearly basis, sales rose 3.3%, ahead of a 2.7% increase in the consumer price index for that month.

While the BLS is behind schedule on PPI data due to last year’s government shutdown, retail sales data is also lagging behind.

Financial markets reacted little to the data; While stock futures were pointing lower, Treasury yields were nearly flat. Investors continued to price in the odds of the Fed meeting later this month as almost zero.