U.S. producer prices rose 0.3% in October, the Bureau of Labor Statistics said Friday at 8:30 a.m. ET, slowing from a revised 1.4% jump in September. Over the 12 months through October, the producer price index for final demand climbed 6.5%, the largest annual increase since November 2022, when it rose 7.4%.
The monthly gain was a little below the 0.4% that economists expected in a Dow Jones survey and a Reuters poll. Core producer prices, which exclude food and energy, rose 0.3% for the month, in line with forecasts, and were up 5.0% from a year earlier. A narrower measure that also leaves out trade services rose 0.5%, matching September, and was up 4.9% over 12 months.
Goods prices rose 0.5%. More than 60% of the overall October increase came from goods other than food and energy, which rose 0.5%, while food prices jumped 1.3% and energy prices edged down 0.1%, the BLS said. Goods prices are up 10.2% from a year earlier. Services prices rose 0.2%, their fifth straight monthly increase, as the cost of trucking freight climbed 3.9%.
Stock futures added to their gains after the report. Shortly after 9 a.m. ET, S&P 500 and Dow futures were up about 0.4% and Nasdaq 100 futures were up about 0.1%. The 10-year Treasury yield was about 5.14%, up roughly 4 basis points on the day and still above 5%.
The report comes ahead of the Federal Reserve’s Dec. 8-9 policy meeting. Traders expect the Fed to raise interest rates by at least a quarter point at that meeting, and some see a chance of a half-point increase, according to CNBC and Reuters.
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