Nov. 14 (UPI) — Wholesale Producer Price Index inflation rose 0.2% in October and is up 2.4% annually, according to a Thursday report from the Bureau of Labor Statistics.
The PPI numbers matched the Dow Jones consensus forecast. The Fed is expected to cut interest rates again in December based on inflation data.
“In October, most of the rise in final demand prices can be traced to a 0.3% advance in the index for final demand services,” the BLS said i na statement. “Prices for final demand goods inched up 0.1%. The index for final demand less foods, energy, and trade services increased 0.3% in October after moving up 0.1% in September. For the 12 months ended in October, prices for final demand less foods, energy, and trade services rose 3.5%.”
PPI prices for services were up 0.3% in October. Goods prices were up 0.1% in October.
Crude petroleum prices rose 7.3% while natural gas, slaughter cattle and poultry and non ferrous metal ore prices also rose. For the 12 months ended on October prices excluding food, energy and trade services rose 3.5%.
“Over one-third of the rise in the index for final demand services can be traced to prices for portfolio management, which advanced 3.6%,” the BLS statement said. “The index for final demand goods inched up 0.1% in October following two consecutive decreases. The advance can be traced to a 0.3% rise in prices for final demand goods less foods and energy.”
The BLS said an 8.4% hike in the price of carbon steel scrap was a major factor in goods prices in October.
“Machinery and vehicle wholesaling, airline passenger services, computer hardware, software, and supplies retailing; outpatient care (partial); and cable and satellite subscriber services also moved higher,” the BLS said.
Apparel, footwear and accessories prices fell 3.7%.