The Producer Price Index experienced a 2.0% gain in November, the biggest monthly advance since 1974. PPI is a measure of wholesale prices. Core PPI, which excludes energy and food, rose 1.3%, the biggest increase since 1980. The big jump in PPI caught economists and experts by surprise as the consensus estimate was for a 0.5% increase.
According to Kirk Shinkle of Investor's Business Daily, investors should not be overly concerned with the big jump as the majority of the increase in prices was due to volatility in the auto sector. Wholesale car prices rose 2.2%, while light truck prices jumped 13.7%.
Bureau of Labor Statistics
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