In the latest sign of disinflation, October U.S. wholesale prices posted their first monthly decline since May of this year and their sharpest monthly amount since the height of COVID-19, according to the Labor Department’s latest Producer Price Index published Nov. 15.
The report for that index showed that the PPI — which measures inflation before it reaches consumers — dropped 0.5% in October, marking its biggest one-month decline since April 2020. Year-over-year, October producer prices rose 1.3%, a major deceleration from September’s 2.2%, and the smallest annual increase since this past July.
October U.S. Core CPI Rise was Slowest in Almost 2 Years (Nov. 14)
Wholesale prices for final demand goods fell 1.4% in October from September, marking its first monthly decrease since May’s 1.5% decline. The Labor Department noted that 80% of the October decline was driven by a 15.3% drop in the price of gasoline.
The index for “core PPI”, which excludes volatile categories of foods, energy and trade services, increased 0.1% in October on a monthly basis for its fifth consecutive such rise. Year-over-year, core PPI increased 2.9%.
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