Up 0.2% month over month, up 8.0% year over year
Prices for goods increased by 0.6%, prices for services decreased slightly
US wholesale prices rose just 0.2%p in October, less than expected.
According to the US Bureau of Labor Statistics on the 15th (local time), producer price inflation (PPI) also increased by only 0.2% in October, indicating that inflation is cooling even in manufacturer level. Economists polled by the Wall Street Journal had expected a 0.4% increase.
As a result, over the past 12 months, wholesale price inflation has declined from 8.4% in September to 8% in October year-on-year. In March, the annual rate peaked at 11.7%.
Excluding volatile food and energy costs, core wholesale prices also rose 0.2 percentage points in the month to 5.4% year on year. This is a moderate figure compared to 5.6% in September.
However, energy costs rose 2.7% in October and food costs rose 0.5%.
Prices for goods rose 0.6%, the biggest increase in four months, but prices for services fell slightly.
Producer prices (PPI) reflect what companies pay for supplies such as grain, fuel, metals, lumber, and packaging. These costs are passed on to customers at the retail level, usually leading to higher consumer prices.
Meanwhile, October’s consumer price index (CPI), announced last week, rose 0.2% monthly and 7.7% year-on-year, a slower-than-expected rate, indicating that inflation it started to cool down.
Guest reporter Kim Jung-ah [email protected]
