CNBC: ‘No Sign’ that Price Increases are Easing, Even After November’s 9.6 Percent Hike

CNBC’s Steve Liesman said Tuesday there was “no sign” inflation would ease in the days ahead, even as an inflation index indicated a whopping 9.6 percent rise in producer prices for the month of November.

“It’s not just the final demand,” Liesman said in a morning segment about Tuesday’s monthly edition of the producer price index. “It’s that you still have inflationary pressures in the pipeline here. Intermediate goods, unprocessed goods — so there’s no sign that the pipeline of prices increases is easing.”

The Bureau of Labor Statistics’ monthly producer price index published on Tuesday revealed a 9.6 year-over-year increase in producer prices in November. That included a .8 percent gain for the month, more than the .6 percent recorded in October.

The Federal Reserve’s Open Market Committee, meanwhile, is finishing a two-day meeting on Tuesday to determine whether to pursue higher interests and tapered bond purchases as a solution. The Dow Jones had fallen around 100 points as of mid-afternoon, while the Nasdaq fell by more than 200 points, as investors anticipated the move.

Liesman said Americans should expect “more pressure to come” as it pertained to inflation and its implications for the economy.

“Just a reminder this whole [inflation] thing started with producer prices being on the increase,” Liesman noted. “And then that bled over into consumer prices. So the idea is that there’s more pressure to come.”

Watch above via CNBC.

New: The Mediaite One-Sheet "Newsletter of Newsletters"
Your daily summary and analysis of what the many, many media newsletters are saying and reporting. Subscribe now!