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.
Economists had expected annual and monthly core PPI to measure 7.2% and 0.3%, respectively, according to estimates on Refinitiv.
Since PPI captures price changes happening further upstream, the report is considered by some to be a leading indicator for broader inflationary trends and a predictor of what consumers will eventually see at the store level.
Last week’s Consumer Price Index showed inflation slowed to 7.7% from 8.2% year-over-year, surprising investors and giving Wall Street its biggest boost since 2020.
This story is developing and will be updated.