CNN
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U.S. wholesale inflation spiked last month, an unwelcome sign that some prices could rise before they reach consumers.

The producer price index, a measure of average price changes among producers and manufacturers, rose 0.4% monthly and 3% in the 12 months to November, marking an acceleration from October, when prices rose 0.3% and 2%, respectively .6% rose. according to Bureau of Labor Statistics data released Thursday.

Both the monthly and annual rates for October were revised upwards from their original estimates.

BLS data shows PPI at its highest annual rate since February 2023.

Economists expected prices to rise (0.2% from October and 2.6% annually), partly due to unfavorable comparisons to this time last year when inflation slowed sharply.

However, food prices rose 3.1% last month, pushing up the overall index. The chicken egg index, which rose 54.6% since October, was the biggest culprit – accounting for a quarter of the total monthly increase.

An ongoing deadly avian flu, combined with holiday demand, has created shortages and driven up egg prices.

Food and energy prices can also be incredibly volatile, changing dramatically due to events such as weather or disease. To get a better sense of underlying inflation, economists closely watch the “core” measures of price gauges that exclude food and energy.

Core PPI rose 0.2% for the month, slowing from 0.3% in October and in line with expectations. On an annual basis, core PPI remained at 3.4%. Like the overall PPI, the core countries’ annual rate has also been revised upwards.

The PPI serves as a potential indicator of inflation at the retail level in the coming months. On Wednesday, the latest consumer price index was in line with expectations but showed some stagnation in progress in containing inflation.

This story is evolving and will be updated.