Egg surge drives US producer price hike
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The news: US producer prices rose 0.4% in November, more than expected and the largest rise in five months, driven by higher food costs, with a notable 55% surge in egg prices due to avian flu.
The numbers: The US Bureau of Labor Statistics showed the year-on-year PPI climbed to 3.0%, up from 2.6% in October, while goods prices excluding food and energy rose 0.2%.
Fresh and dry vegetable prices jumped 33%, while fruit and melon prices rose 22%, contributing to a 3.1% overall food price increase, the largest in two years.
Services prices rose just 0.2%, the smallest gain in four months, with declines in portfolio management fees (-0.6%) and airfares (-2.1%).
The context: Economists polled by Reuters had expected the PPI to gain 0.2% in the month, after October’s 0.2% rise.
Bloomberg noted the avian disease has led to the culling of over 33 million eggs and young birds this year, doubling the 2023 total.
The numbers come after official data showed consumer prices increased by the most in seven months in November.
The sources: US Bureau of Labor Statistics , Bloomberg , Reuters
