Consumer and producer prices rise in November:Following a 2.6% over-the-year increase in October, consumer prices rose 0.3% over the month and 2.7% over the year in November. Meanwhile, wholesale prices increased 0.4% over the month and 3.0% over the year in October, the largest rise since the year-over-year increase in February 2023.
What it means: Although markets still anticipate another 25-basis-point cut at the Federal Open Market Committee’s meeting this week, the FOMC will have to reevaluate the risks to its dual mandate of maximum employment and stable prices as the job market shows signs of improvement while inflation has ticked up in recent months.
Earnings for production employees continue to outpace inflation: Real average hourly earnings increased 0.1% over the month and 1.3% over the past year for production and nonsupervisory employees in November. Before adjusting for inflation, average hourly earnings for manufacturing production workers rose 5.2% in November.
Why it matters: Average hourly earnings continue to grow at a faster pace for frontline employees than earnings for all private employees, which grew 4.0% from last year.
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