The U.S. producer price index rose 6.5% over the year through October, its quickest annual increase since November 2022, adding a new measure of inflation pressure as the Federal Reserve weighs its next move.
The Bureau of Labor Statistics (BLS) reported a seasonally adjusted 0.3% rise from September. The index excluding food and energy also increased 0.3%, BLS data showed. The headline annual rate accelerated by 0.2 percentage point from September.
The producer price index tracks price changes earlier in the supply chain than the Consumer Price Index (CPI). CNBC reported the monthly headline result came in below the 0.4% Dow Jones consensus. Stock futures moved higher after the release, while Treasury yields moved in different directions, CNBC reported.
Consumer inflation had also come in above forecasts earlier this week: CPI advanced 0.4% from September, and core CPI rose 0.3%, according to BLS. CNBC reported both readings topped forecasts by 0.1 percentage point. CNBC said the bureau did not issue an annual CPI comparison for October because the 2025 government shutdown interrupted some data collection. EconoTimes previously covered the October consumer price report and its missing annual comparison.
CNBC reported policymakers were concerned that price pressures tied to the Iran war, higher fuel prices and President Donald Trump's tariffs were spreading through the economy. Chicago Fed President Austan Goolsbee told CNBC, “We've had some signs of trouble now for several months in a row.” He said price increases remained visible outside categories directly affected by oil and tariffs, with some moving in the wrong direction.
Interest-rate markets were pricing in a 0.25 percentage-point increase at the Fed's next meeting, with some chance of a 0.5-point move, CNBC reported. CNBC said the meeting was scheduled for Dec. 8-9.
