A key measure of inflation, wholesale prices, rose by 8% in October from a year before, according to the latest report from the Bureau of Labor Statistics.
The number is significantly better than forecasts. Economists expected the Producer Price Index, which measures prices paid for goods and services before they reach consumers, to show an annual increase of 8.3%, down from September’s revised 8.4%.
On a monthly basis, producer prices rose 0.2%, below expectations and even with the revised 0.2% increase seen in September.
Year-over-year, core PPI — which excludes food and energy, components whose pricing is more prone to market volatility — measured 6.7%, down from September’s revised annual increase of 7.1%.
Month-over-month, core PPI prices were flat. In September, core PPI increased by a revised 0.2% from the month before.