This is a decrease of 8.4% from September’s 9.4% annual rate. The government announced Tuesday that its producer prices index, which measures the cost of goods before they reach consumers and costs, increased 0.2% in February. October From September. This was the same as September, but it was revised down from 0.4%.

These numbers were lower than economists had expected. This makes it more likely that Fed will raise its benchmark interest rate in smaller increments. For four meetings in succession, it has raised its short-term rate three-quarters of one point. However, economists are increasingly anticipating a slight increase of one-half of a percentage at its December meeting.

“The improvement in the October inflation data, if it persists, supports the Fed’s expectation of a step down in the pace of increases going forward,” Rubeela Farooqi is the chief U.S. economist for High Frequency Economics. This forecasting firm provides forecasting services.

Majority of the monthly increases were due to higher gas prices. wholesale level rose 5.7% to the end of January October. Last month saw a 1.5% drop in the cost of new cars. This could be a sign that things are improving. to You will also find lower retail prices.

Prices of core producers were unaffected by volatile food and energy products. October This was the lowest reading in almost two decades, and it started in September. Core prices rose 6.7% in September compared to a year ago. This is a decrease of 7.1% from September.

In 2017, the cost of services like hotels, air travel and health care fell 0.1% October The first drop since November 2020 will be in September.

The report follows last week’s better-known consumer price index, which showed that year-over-year inflation Cooled to The 7.7% growth rate was slower than anticipated OctoberThis is down from 8.2% reported in September. The report did not include volatile food or energy costs and said that core prices increased by 0.3%. October The increase was half compared to the previous month.

These consumers inflation Stock markets were sent soaring by these figures, which suggested that the recent price rises of the past 18 month might be finally slowing down. The price of used cars, clothing and furniture dropped, which is a sign that goods prices are beginning to reverse the huge price jumps they made last year due to supply chain blockages. inflation soaring.

These months have seen delays at major ports cleared and ocean shipping costs drop. In addition, more stores are increasing their stockpiles. All these trends suggest that goods prices will continue to rise. to decline.

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