U.S. wholesale inflation increased 0.2% in October month-to-month, and increased 2.4% year-over-year, following an increase in consumer prices.

The Bureau of Labor Statistics released its monthly Producer Price Index report on Nov. 14, showing that the seasonally adjusted PPI for final demand increased 2.4% in October on an annual basis, up from a 1.8% gain in September.

October’s year-over-year figure matched the estimate from economists, according to FactSet.

Monthly the PPI was up, following a 0.1% increase in September. This was driven by a 0.3% increase in final demand, while final demand goods was also up 0.1%.

U.S. Producer Price Index Month-to-Month

source: tradingeconomics.com

U.S. Producer Price Index Year-Over-Year

source: tradingeconomics.com

The PPI tracks average price shifts at the wholesale level before they reach consumers.

However, core PPI — which excludes volatile food and energy categories — increased 0.3% in October month-to-month, following a 0.1% in September. Year-over-year, core PPI increased 3.1%, down from 3.2% in September.

U.S. Core Producer Price Month-to-Month

source: tradingeconomics.com

U.S. Core Producer Price Year-Over-Year

source: tradingeconomics.com

The PPI report came a day after the Bureau issued its Consumer Price Index, which showed that consumer-facing inflation increased 2.6% in the 12 months ending October — marking the first annual rise since March. Despite an increase year-over-year, the report met economists’ expectations. While monthly CPI increased 0.2%, unchanged from September and August.