US producer prices rise 0.4pc in November

The US producer price index rose 3% on an annualised basis and 0.4% month-on-month in November, according to the Bureau of Labor Statistics, stronger than expectations.

On a monthly basis, and the core PPI rose 0.4%, while the annual core rate, which strips out volatile food and energy prices, steadied at 3.4%, the same as October's upwardly revised reading and above expectations of 3.2%.

November's increase marked the biggest monthly gain in five months, indicating that manufacturers have been experiencing increased costs, which they will likely pass on to consumers in the form of higher prices.

Goods cost went up 0.7% and prices for services edged 0.2% higher.

Reporting by Iain Gilbert at Sharecast.com