Business · Economy · 22 hrs ago
U.S. producer prices post biggest annual rise in four years
U.S. producer prices rose 6.5% over the year to October, the biggest annual increase since November 2022.
The Labor Department said prices for final demand rose 0.3% in October, less than economists had expected, after a revised 1.4% increase in September.
Producer prices track what businesses receive for goods and services and can give an early indication of pressure on consumer prices.
Food and goods excluding food and energy became more expensive, while transport costs also rose; services prices increased for a fifth month.
Rising costs could add to inflation for consumers, following stronger-than-expected consumer price data for October.
Markets are weighing a Federal Reserve rate rise in December, with expectations split between an increase of 0.25 and 0.5 percentage points.
Markets also anticipate another increase in borrowing costs in January, according to CME's FedWatch tool.
U.S. producer prices rose 6.5% in the year through October, their largest annual increase since November 2022.
The Labor Department said its final-demand producer price index increased 0.3% in October, below economists’ 0.4% forecast.
September’s monthly increase was revised up to 1.4% from 1.3%.
Food and goods prices rose, while services prices increased for a fifth consecutive month.
The report added to expectations that the Federal Reserve may continue raising interest rates.
- Who
- The U.S. Labor Department’s Bureau of Labor Statistics reported the figures.
- What
- Producer prices rose 0.3% in October and 6.5% over the year.
- When
- October 2026; the report was released on Friday, November 13.
- Where
- United States.
- Why
- Higher goods and services prices contributed to the increase; sources say it added to expectations that the Federal Reserve may raise rates.
This story does not have two clearly opposing sides.
Producer prices rose 1.4% from the previous month, after the figure was revised up from 1.3%.
Producer prices increased 0.3% from September and 6.5% from a year earlier.
The Labor Department released the producer price figures.
Financial markets weighed a 25-basis-point rate increase against the possibility of a half-percentage-point increase.
Financial markets anticipated another increase in borrowing costs, according to CME’s FedWatch tool.
- Monthly producer price increase
- 0.3% in October
- Annual producer price increase
- 6.5% in the year through October
- Previous month
- September’s monthly increase revised to 1.4%
- Largest annual rise since
- November 2022
- Food prices
- Rose 1.3% in October
- Services prices
- Rose 0.2%, marking five consecutive monthly increases
5 sources
U.S. producer prices climb at highest annual rate in four years
أسعار المنتجين في الولايات المتحدة تواصل الارتفاع في أكتوبر
USA: Anstieg der Erzeugerpreise beschleunigt sich erneut
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What people are saying
There is no silver lining in the report.