US Producer price inflation for October mellowed in unison with the CPI release from last week. The PPI rose 0.2% month-over-month in October of 2022, the same as a downwardly revised 0.2% increase in September and below market forecasts of 0.4%. Goods cost went up 0.6%, the largest advance since a 2.2% rise in June, mainly pushed by a 5.7% jump in gasoline cost. Services cost fell 0.1%, the first decline since November of 2020. Prices for fuels and lubricants retailing were down 7.7%. The Federal Reserve has been on an aggressive path to reducing historically high U.S. inflation, we are a long way from the Central Bank transitory mantra.
October 2022 PPI
US June PPI Highlights.
- US PPI (M/M) Oct: 0.2% (est 0.4%; prevR 0.2%)
- US PPI (Y/Y) Oct: 8.0% (est 8.3%; prevR 8.4%)
- US PPI Core (M/M) Oct: 0.0% (est 0.3%; prevR 0.2%)
- US PPI Core (Y/Y) Oct: 6.7% (est 7.2%; prev 7.2%)
Where the price rises were:
- Goods cost rose 0.6%, the largest advance since a 2.2% rise in June, mainly pushed by a 5.7% jump in gasoline cost. Prices for diesel fuel, fresh and dry vegetables, residential electric power, chicken eggs, and oil field and gas field machinery also advanced. In contrast, the index for passenger cars declined 1.5%.
- Services cost fell 0.1%, the first decline since November of 2020. Prices for fuels and lubricants retailing were down 7.7% and prices also moved lower for portfolio management, long-distance motor carrying, automobile retailing, and professional and commercial equipment wholesaling. In contrast, cost for hospital inpatient care increased 0.8%.
- Compared to the same month in 2021, producer prices were up 8%, the smallest increase since July last year.
US Core PPI
PPI was released after consumer price data for October, offering important clues on how aggressive the Fed will be in hiking interest rates. The CPI increased 0.4% in October as it did in September, and increased 7.7% in October from a year ago, the smallest 12-month increase since January 2022. CPI y/y was down from 8.2% in September.
From the Traders Community News Desk