A key measure of inflation, wholesale prices, rose 8% in October from a year earlier, according to the latest report from the Bureau of Labor Statistics.
The figure is significantly better than forecasts. Economists had expected the producer price index, which measures the prices paid for goods and services before they reach consumers, to show an annual increase of 8.3 percent, down from September’s revised 8.4 percent.
In monthly terms, producer prices rose 0.2%, below expectations and even with the revised increase of 0.2% seen in September.
Year-on-year, the core PPI, which excludes food and energy, components whose prices are more prone to market volatility, measured 6.7%, below the revised annual increase of 7.1 % of September
Month over month, core PPI prices were flat. In September, core PPI rose a revised 0.2% from the previous month.
Economists had expected annual and monthly core PPI to measure 7.2% and 0.3%, respectively, according to Refinitiv estimates.
Since the PPI captures the price changes that occur above that, some see the report as a leading indicator of broader inflationary trends and a predictor of what consumers will eventually see at the store level.
Last week’s consumer price index showed inflation slowed to 7.7% from 8.2% year-on-year, surprising investors and giving Wall Street its biggest boost since 2020.
This story is developing and will be updated.