US producer price inflation cools slightly more than expected in October

13th Nov 2026 12:56

(Sharecast News) - US wholesale prices rose slightly less than expected in October, according to the Bureau of Labor Statistics, as investors look ahead to next month's Federal Reserve policy meeting.

The producer price index for final demand increased 0.3% on a seasonally adjusted basis last month, cooling sharply from September's 1.4% jump and coming in below consensus estimates for a 0.4% gain. However, on an unadjusted annual basis, headline PPI accelerated 0.2 percentage points to 6.5% - the highest 12-month rate since November 2022.

Core PPI, which strips out volatile food and energy costs, rose 0.3% month-on-month, matching expectations, while the index excluding food, energy, and trade services climbed 0.5% for the second straight month, leaving it up 4.9% year-on-year.

Leading October's headline advance, final demand goods rose 0.5%, driven by a 1.3% jump in food prices and a 3.9% surge in basic organic chemicals, which more than offset a 7.9% drop in diesel fuel. Final demand services edged up 0.2% for a fifth consecutive monthly gain, underpinned by a 3.9% increase in truck freight transport.

The data lands just weeks before the Federal Open Market Committee's December meeting, where markets have fully priced in a 25-basis-point interest rate hike alongside slight odds of a 50-basis-point move.

Reporting by Iain Gilbert at Sharecast.com