Producer inflation picks up in October
Producer prices rose 0.6% last month
Producer prices rose at a faster clip in October and at a record annual pace as supply chain bottlenecks and materials shortages continued to put upward pressure on costs.
The producer price index for final demand increased 0.6% last month, accelerating slightly from the 0.5% gain in September according to the Labor Department. The reading was in line with what analysts surveyed by Refinitiv were expecting.
Prices jumped 8.6% year over year, matching last month’s reading for the largest annual increase on record. Annual price increases have printed at a record pace for seven straight months.
The index rose 0.4% in October when excluding food, energy and trade. Analysts were expecting a 0.5% increase after a 0.2% jump in September.
Core prices rose 6.8% year over year, matching estimates.
More than 60% of the October increase was due to the 1.2% jump in prices for goods, while services prices edged up 0.2%.
One-third of the increase in goods prices occurred as energy costs surged 6.7%. Prices for beef and veal declined 10.3%.
Meanwhile, over 80% of the increase in final demand services prices was due to autos and parts, whose prices soared 8.9%.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
Investors will receive another inflation update on Wednesday when the Labor Department releases the October consumer price index. Analysts surveyed by Refinitiv anticipated a 0.6% increase in October and a 5.9% year-over-year gain.