Inflation at the wholesale level moderated more than expected in November, the latest sign that high consumer prices are beginning to loosen their stranglehold on the U.S. economy.

The Labor Department said Wednesday that its producer price index, which measures inflation at the wholesale level before it reaches consumers, was unchanged in November from the previous month. On an annual basis, prices remain up 0.9% – a sharp drop from the 1.3% recorded in September.

Those figures are both lower than the 0.1% monthly gain and 1% annual figure predicted by Refinitiv economists.

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In another sign that suggests high inflation is beginning to dissipate, core prices – which exclude the more volatile measurements of food and energy – were also unchanged for the month, lower than the 0.2% estimate. The figure was up 2.2% on a 12-month basis, down from 2.4% the previous month. 

The data comes a day after the Labor Department reported that the consumer price index, which measures the prices paid directly by consumers, rose 0.1% in November, slightly more than expected.

The back-to-back inflation reports will have major implications for the Federal Reserve, which has raised interest rates at the fastest pace in decades as it tries to cool the economy. The central bank has approved 11 rate hikes since March 2022, lifting the federal funds rate to the highest level since 2001. 

This is a developing story. Please check back for updates.