US Producer Prices Slow in October as Inflationary Pressures Show Signs of Abating

US producer prices eased in October by more than market expectations, suggesting that inflationary pressures are finally starting to abate thanks to the Fed’s aggressive tightening cycle.

The producer price index for final demand rose 0.2% from September and 8% from October 2021, marking the smallest year-over-year gain in over 12 months. Economists polled by Bloomberg forecast a 0.4% monthly gain and an 8.3% advance from one year ago. Meanwhile, core PPI, which does not account for food and energy categories, remained unchanged last month, rising 6.7% annually.

According to the BLS report, goods prices jumped 0.6% largely due to a rise in food and energy prices, which rose 2.7% and 0.5%, respectively. On the other hand, prices for final demand excluding food and energy dropped 0.1%. In fact, over 60% of last month’s final demand goods increase was attributed to the gasoline index, which advanced 5.7%. However, what was most pivotal about last month’s print was the unexpected drop in final demand services, which slumped 0.1%— the first decrease since November 2020.

The latest data follows last week’s closely-watched CPI print, which showed consumer prices increase 7.7% over the past 12 months, signalling that the sharpest acceleration in inflation over the past 40 years is finally beginning to wane.

Information for this briefing was found via the BLS. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Is Gold’s Bull Market About to Hit Junior Stocks? | Ken Armstrong – Westhaven Gold

Surge Battery Metals: The Nevada North Lithium PEA

Silver @ $36 & We’re Still 200M Oz Short | Paul Andre Huet – Americas Gold and Silver

Recommended

Goliath Resources Closes Out Funding Round With Total Gross Proceeds Of $27.1 Million

Silver47 Kickstarts 4,000 Metre Drill Campaign At Red Mountain Project

Related News

Nigerian Inflation Hits Three-Decade High

In December 2023, Nigeria experienced a significant surge in inflation, reaching its highest annual pace...

Monday, January 15, 2024, 07:02:00 AM

Bank of Canada Maintains Policy Rate But Expects Inflation to Persist in 2022

What comes as likely not a surprise to many, the Bank of Canada once again...

Wednesday, December 8, 2021, 02:53:00 PM

Zimbabwe Suspends Stock Trading and Money Transfers To Protect Currency from Soaring Inflation

As the coronavirus crisis continues to devastate economies around the world, Zimbabwe is facing its...

Tuesday, June 30, 2020, 07:18:00 PM

Cost-Push Inflation is Here: P&G Set to Raise Prices in September

Tell me we have inflation without telling me we have inflation: P&G announces price increases...

Wednesday, April 21, 2021, 10:52:00 AM

South Africa Erupts In Protests as Global Inflation Crisis Worsens

The extent of the global inflation crisis is becoming increasingly apparent, as more and more...

Wednesday, August 3, 2022, 11:46:00 AM