The key facts
- US annual producer inflation in October was 6.5%, up from 6.3% in September — the highest since November 2022
- The monthly PPI increase slowed to 0.3% after a 1.4% jump in September
- Goods prices rose 10.2% over the year, intermediate goods 14.6%
Annual figure accelerated, monthly one slowed
Annual producer inflation in the US reached 6.5% in October — the highest level since November 2022. According to the Bureau of Labor Statistics, the figure accelerated from 6.3% in September. At the same time, the monthly increase in the producer price index (PPI) for final demand was 0.3%, notably less than the 1.4% jump in September and the 0.4% rise in August.
Goods remain the main driver
The monthly increase was driven by goods, which rose 0.5%, while services added 0.2%. Year over year, goods prices rose 10.2% — the largest increase since October 2022. Excluding food, energy and trade services, producer prices rose 0.5% for the second month in a row, while the annual growth of this measure slowed to 4.9% from 5% in September.
Mixed dynamics across categories
Among individual items, food prices rose 1.3%, while energy slipped slightly, down 0.1%. Diesel fuel fell 7.9%, but basic organic chemicals rose 3.9%; increases were also recorded for vegetables, gas fuels, jet fuel and processed poultry. Goods excluding food and energy accounted for more than 60% of the monthly rise in goods prices.
Services and intermediate goods
Services prices have risen for the fifth month in a row: transportation and warehousing costs increased 2% and accounted for three quarters of the overall rise in services. Truck freight rose 3.9%, while margins in machinery and vehicle wholesaling fell 4.2%. The dynamics of intermediate goods stand out: they added 0.4% for the month and 14.6% for the year — the highest annual increase since July 2022, indicating continued pressure on production costs. At the same time, prices for unprocessed goods fell 3.1% due to a 7.7% drop in energy commodity prices; crude oil fell 10.3%.
