U.S. Producer Price Growth Slows in October - Modern Distribution Management

Log In

U.S. Producer Price Growth Slows in October

U.S. producer prices increased less than expected in October, according to data released by the U.S. Bureau of Labor Statistics.
Aerial top view oil and gas chemical tank with oil refinery plant background at twilight.
Author
Date

U.S. producer prices increased less than expected in October, while services fell for the first time in nearly two years, according to data released by the U.S. Bureau of Labor Statistics Nov. 15, which indicated that inflation may be starting to subside.

The producer price index for final demand (PPI) rose 0.2% in October while increasing 8% compared to October 2021, the smallest year-over-year increase since July 2021. Neither increase met the expectations of economists, who forecasted hikes of 0.4% consecutively and 8.3% year-over-year.

“This report will add to the narrative that inflation has peaked and, in particular, that pressures from the goods sector may be easing,” said Brean Capital Senior Economic Advisor Conrad DeQuadros, an economist polled by Reuters.

Contributing to the PPI increase last month was a 0.6% increase in the price of goods, twice the 0.3% increase in September. October’s increase in the price of goods was carried by gasoline, which vaulted 5.7%, accounting for 60% of the increase in price for goods.

The index for final demand services fell 0.1% in October, according to the report — its first decline since dropping 0.2% in November 2020. Trade services, which measure changes in profits received by wholesalers and retailers, decreased 0.5%, while prices for transportation and warehousing services dropped 0.2%.

A major factor in the October decrease was fuels and lubricants, which fell 7.7%. Prices for hospital inpatient care, however, increased 0.8%. The increase in medical services components concerned economists, who said the rise was driven by wages.

“This could be an even more concerning inflation dynamic for Fed officials that have been hesitant to acknowledge wages as a driver of strong price inflation,” said Veronica Clark, a Citigroup economist polled by Reuters.

Related Posts

Share this article

About the Author
Recommended Reading
Leave a Reply

Leave a Comment

Sign Up for the MDM Update Newsletter

The MDM update newsletter is your best source for news and trends in the wholesale distribution industry.

Get the MDM Update Newsletter

Wholesale distribution news and trends delivered right to your inbox.

Sign-up for our free newsletter and get:

  • Up-to-date news in a quick-to-read format
  • Free access to webcasts, podcasts and live events
  • Exclusive whitepapers, research and reports
  • And more!

2

articles left

Want more Premium content from MDM?

Subscribe today and get:

  • New issues twice each month
  • Unlimited access to mdm.com, including 10+ years of archived data
  • Current trends analysis, market data and economic updates
  • Discounts on select store products and events

Subscribe to continue reading

MDM Premium Subscribers get:

  • Unlimited access to MDM.com
  • 1 year digital subscription, with new issues twice a month
  • Trends analysis, market data and quarterly economic updates
  • Deals on select store products and events

1

article
left

You have one free article remaining

Subscribe to MDM Premium to get unlimited access. Your subscription includes:

  • Two new issues a month
  • Access to 10+ years of archived data on mdm.com
  • Quarterly economic updates, trends analysis and market data
  • Store and event discounts

To continue reading, you must be an MDM Premium subscriber.

Join other distribution executives who use MDM Premium to optimize their business. Our insights and analysis help you enter the right new markets, turbocharge your sales and marketing efforts, identify business partners that help you scale, and stay ahead of your competitors.

Register for full access

By providing your email, you agree to receive announcements from us and our partners for our newsletter, events, surveys, and partner resources per MDM Terms & Conditions. You can withdraw consent at any time.

Learn More about Custom Reports

Request a Market Prospector Demo

  • This field is for validation purposes and should be left unchanged.