OnDemand WTP Pricing Research

Trucking rates continue to climb as carriers retain pricing power | FreightWaves

Data on producer prices shows that overall inflation pressure calmed in November, weighed down by declines in gasoline prices. Industry detail showed that trucking rates continues to surge, however, driven by another large gain in long-distance trucking rates.

The Bureau of Labor Statistics reported that the producer price index (PPI) advanced 0.1%. This exceeds consensus estimates of no gain and comes on the heels of a 0.6% gain in the previous month that was the largest monthly gain in six years. Price gains during the month were restrained by falling gasoline prices, which helped to offset increases in the service sector. The PPI excluding the volatile food and energy components rose by 0.3% in November and is now 2.7% higher than at this point last year.

Market watchers and policymakers typically use the PPI to gain some insight into what the underlying pressures of inflation are in the economy. The PPI measures the prices that businesses receive for the goods and services that they provide, and is often seen as a bellwether of upcoming increases in consumer prices.

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Trucking rates continue to climb as carriers retain pricing power — FreightWaves.

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