Wholesale inflation was softer than expected as retail sales rose in November.

Producer prices rose 0.2% in November, below forecasts, while retail sales increased 0.6% as consumer spending was broad-based.

Wholesale prices rose less than expected in November while consumer purchases moved higher, based on recent government releases. The Bureau of Labor Statistics reported the producer price index climbed 0.2% for the month. Excluding food and energy, core PPI was flat for the month. The Commerce Department said retail sales increased 0.6% in November, with gains across several categories. The BLS remains behind schedule on PPI data following last year’s government shutdown. Key details: - Producer Price Index (PPI) rose 0.2% month-over-month; core PPI excluding food and energy was flat for the month. - Headline PPI was up 3.0% year-over-year; core PPI excluding trade services posted a 3.5% annual gain, the largest 12-month increase since March 2025, according to the BLS. - Goods prices increased 0.9% for the month, with more than 80% of that rise attributable to a 4.6% jump in energy prices; services prices were flat. - Retail sales rose 0.6% in November on a seasonally adjusted (not inflation-adjusted) basis; excluding autos, sales were up 0.5%. - Year-over-year retail sales increased 3.3%, ahead of the 2.7% year-over-year rise in the consumer price index for November. - Monthly retail gains were broad-based, with motor vehicle and parts dealers, building materials and garden centers, gas stations, sporting goods stores and miscellaneous outlets all seeing increases above 1%. Summary: Wholesale inflation showed smaller monthly gains but remains elevated on a year-over-year basis, while consumer spending in November was stronger than expected and widely distributed across sectors. Financial markets reacted little to the reports, with stock futures softer and Treasury yields near flat, and traders were pricing in virtually no chance of a Federal Reserve rate change when it meets later this month.