It turns out that inflation in November was the highest since 1973.
NEW YORK (CNNMoney.com) — Wholesale prices saw their biggest jump in 34 years in November, according to a government inflation reading Thursday that came in much higher than forecast due to a spike in energy prices.
The Producer Price Index rose 3.2 percent, up from only a 0.1 percent rise in October. Economists surveyed by Briefing.com had forecast a 1.5 percent increase.
A 14.1 percent rise in energy prices was the primary driver. Food prices, which had been another source of inflationary pressures, were unchanged in the latest month.
The even more closely watched core PPI, which strips out volatile food and energy prices, also rose much more than expected, jumping 0.4 percent after being unchanged in October. Economists had forecast only a 0.2 percent rise in that reading.
The inflation reading comes the day before the government’s key inflation reading on the retail level, the Consumer Price Index, or CPI. That report, which is less volatile than the PPI, is forecast to show a 0.6 percent in the overall CPI, and a 0.2 percent rise in core CPI.