A slowdown in US producer price growth raises expectations of a decline in inflation (Getty)
US producer prices rose less than expected in October, with prices of services falling for the first time in nearly two years, in new evidence that inflation It is starting to decline, which may allow the Federal Reserve (the central bank of the United States) to slow down The rate of interest rate hike.
The report released by the Labor Ministry showed on Tuesday Decrease in the cost of goods Excluding food and energy, reflecting improving supply chain conditions and slowing demand due to higher borrowing costs. This supports economists’ view that there is a slowdown in commodity price inflation, which helps to curb inflation.
The report came on the heels of last week’s data showing the consumer price index rose less than expected in October, pushing the annual increase below 8% for the first time in eight months.
The producer price index for final demand increased by 0.2% last month. September data was revised downwards to show the producer price index rose 0.2% rather than 0.4% before the revision.
The Federal Reserve has raised interest rates on its funds in six consecutive meetings since last March in order to end the highest inflation the country has witnessed in more than four decades.
The Federal Reserve is only one meeting away this year to announce its decisions on the fourteenth of next month, and expectations are that the increase will not exceed fifty basis points, after the emergence of a decline in producer prices, and before consumer prices, during the last month.
(Reuters, The New Arab)
