Updated
Updated · CNBC · Nov 13
US Wholesale Prices Rise 0.3% in October as Annual PPI Hits 6.5%
Updated
Updated · CNBC · Nov 13

US Wholesale Prices Rise 0.3% in October as Annual PPI Hits 6.5%

3 articles · Updated · CNBC · Nov 13

Summary

  • October producer prices rose 0.3%, below the 0.4% estimate, but the annual PPI rate accelerated to 6.5%—its highest since November 2022.
  • Core PPI, excluding food and energy, also increased 0.3%, while a narrower measure excluding food, energy and trade services climbed 0.5%, signaling broadening price pressure.
  • Goods prices rose 0.5% on the month and 10.2% from a year earlier, the strongest annual gain since October 2022; services prices increased 0.2%, led by transportation and warehousing.
  • Fed officials and investors still see a December rate hike as likely after this week's hotter-than-expected CPI report, with markets fully pricing a quarter-point move and assigning some odds to a half-point increase.
  • Policymakers say inflation tied to the Iran war, fuel costs and Trump's tariffs is spreading beyond those categories, raising concern that price gains are becoming more entrenched.

Insights

With hidden freight costs quietly surging, how soon will this invisible pipeline inflation explode onto everyday store shelves?
If interest rate hikes cannot fix broken supply chains, what drastic measures might the Federal Reserve take next?