US Producer Prices Cool by More Than Forecast on Heels of CPI
US producer price growth stepped down in October by more than expected in the latest sign that inflationary pressures are beginning to ease.
The producer price index for final demand advanced 8% from a year ago, the smallest annual gain in more than a year, and 0.2% from month earlier, Labor Department data showed Tuesday. The median estimates in a Bloomberg survey of economists called for a 8.3% annual increase and a 0.4% rise from the prior month.
The S&P 500 opened higher and Treasury yields eased, while the Bloomberg dollar index declined after the report.
The producer price index for final demand advanced 8% from a year ago, the smallest annual gain in more than a year, and 0.2% from month earlier, Labor Department data showed Tuesday. The median estimates in a Bloomberg survey of economists called for a 8.3% annual increase and a 0.4% rise from the prior month.
The S&P 500 opened higher and Treasury yields eased, while the Bloomberg dollar index declined after the report.
What Bloomberg Economics Says
“Price gains for final-demand goods and services decelerated in October’s PPI print, suggesting demand and supply factors are coming into better balance, particularly in goods sectors.”
“Price gains for final-demand goods and services decelerated in October’s PPI print, suggesting demand and supply factors are coming into better balance, particularly in goods sectors.”
Costs of processed goods for intermediate demand, which reflect prices earlier in the production pipeline, fell. Excluding food and energy, those costs slumped 0.8%, the most since the start of the pandemic.
Separate data have also pointed to an easing of cost pressures. The Institute for Supply Management gauge of prices paid for raw materials by manufacturers slipped last month to its lowest reading since May 2020. And wage growth, while still robust, has eased somewhat.
Separate data have also pointed to an easing of cost pressures. The Institute for Supply Management gauge of prices paid for raw materials by manufacturers slipped last month to its lowest reading since May 2020. And wage growth, while still robust, has eased somewhat.
Understanding Inflation Data:https: What are CPI, PPI and PMI?
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