PPI Inflation Surges with Significant Upward Revisions

The Producer Price Index (PPI) has seen significant upward revisions, particularly in the services sector, which constitutes 67% of the PPI. This has led to a notable acceleration in inflation, with the overall PPI for final demand rising by 3.0% year-over-year in November, the fastest since February 2023. Core PPI, excluding food and energy, also accelerated to 3.4% year-over-year. The revisions highlight that inflation in services has been much higher than previously reported, while goods prices are also re-accelerating.