The Labor
Department reported on Thursday the U.S. producer-price index (PPI) rose 0.2
per cent m-o-m in October, following an upwardly revised 0.1 per cent m-o-m uptick (from unchanged m-o-m) in September.
For the 12
months through October, the PPI surged by 2.4 per cent, sharply quickening from an upwardly revised 1.9 per cent soar (from +1.8 per cent) in the
previous month. This marked the first acceleration in annual producer price
inflation in four months and represented the strongest annual gain since July (+2.4 per cent).
Economists had expected
the headline PPI would increase 0.2 per cent m-o-m and 2.3 per cent over the
past 12 months.
According to
the report, the October gain in the headline index was primarily due to a 0.3-per
cent m-o-m climb in the index for final demand services. In addition, the index
for final demand goods edged up
0.1 per cent m-o-m.
Excluding
volatile prices for food and energy, the PPI advanced 0.3 per cent m-o-m and
jumped 3.1 per cent over 12 months, recording its strongest annual gain in four
months. Economists had predicted increases of 0.3 per cent m-o-m and 3.0 per cent y-o-y
for October. In September, the core PPI demonstrated a 0.2 per cent m-o-m rise and a 2.9 per cent y-o-y climb (revised from +2.8 per
cent y-o-y in the initial estimate).