Minneapolis
Sunday Review Business
 — 

An important measure of inflationWholesale pricesAccording to a report by Bloomberg,, increased by 8% in October compared with a year ago to the Latest report Starting at the Bureau of Labor Statistics.

It is still high but it was not as high as it was. the The smallest increase since July 2013 and much better than the forecasts. It’s the Second inflation report This month to Show signs of cooling the rising prices That has plagued the economy.

Economists expected the Producer Price Index measures prices Before goods or services reach consumers, they are paid for. to show an annual increase of 8.3%, down from September’s revised 8.4%.

Producers are paid on a monthly basis. prices The increase was 0.2% below the expectations, but still within the range of what we expected. the Revision of September’s 0.2% increase

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%.

Core PPI, month-over-month prices were flat, the Lowest monthly reading since November 2020. The core PPI rose 0.2% in September. the month before.

Economists anticipated core PPI monthly and annually. to According to Measurement 7.2% and 0.3% to Estimates on Refinitiv.

President Joe Biden heralded October’s PPI report Tuesday is the day it’s called “more good news for our economy this morning, and more indications that we are starting to see inflation moderate.”

“Today’s news – that prices paid by businesses moderated last month – comes a week after news that prices paid by consumers have also moderated,” Biden wrote Tuesday. “And, today’s report also showed that food inflation slowed – a welcome sign for family’s grocery bills as we head into the holidays.”

For much of the year the Federal Reserve has requested to tamp down decades-high inflation By tightening monetary policies, including issuing unprecedented four consecutive rate hikes 75 basis points or three quarters of a percent point

Jeffrey Roach, chief economist at LPL Financial, stated that the better-than-expected PPI data indicates an economy that has slowed and supply moving more into balance.

For example, transportation and warehousing costs have declined. the A fourth consecutive month is a probable result of the He said that the global shipping environment has improved. Production costs for new cars dropped the He added that most of them have been in place since May 2017.

“Barring geopolitical or financial crises, inflation should continue its deceleration into 2023,” He said this in a statement.

PPI records price changes further upstream. the report It is considered by some to be It is an indicator of wider inflationary trends and a predictor for what consumers will eventually see. the store level.

“The PPI read certainly adds more fuel to the fire for those who feel we may finally be on a downward inflation trend,” Mike Loewengart, Morgan Stanley’s head of model portfolio construction, said in a statement.

Last week’s Consumer Price Index showed inflation Slowed to Consumer goods saw 7.7% growth year-overyear, compared to 8.2% in 2020. This surprised investors and gave Wall Street its greatest boost since 2020.

CPI data were “reassuring,” Lael brainard, Fed vice-chair, indicated that Monday was a sign of the Fed’s intention to resign. the rate hikes Appear to be Take hold and what happens if the Continued economic data to Show inflation On the Then, decline the The central bank could be forced to scale back the Future prospects rate hikes.

“When you look at the inflation numbers, there’s some evidence that we’ve peaked, but are we coming down quickly?” Steven Ricchiuto was the chief economist for Mizuho Americans and spoke to The Sunday Review Business.

Ricchiuto observed that the Only a few steps less than September’s October figures.

“These aren’t the types of things that tell the Fed to stop tightening rates,” He said. However, “they may tell you [that] you don’t need 75 basis points.”

The Sunday Review’s DJ Judd and Matt Egan contributed to This report.