Producer Prices Rise 0.3% in October as Annual Inflation Hits 6.5%

U.S. producer prices rose 0.3% in October, slowing sharply from September, but the annual increase reached its highest level in nearly four years. The Producer Price Index for final demand climbed 6.5% from a year earlier, the biggest gain since November 2022, the Bureau of Labor Statistics reported Friday.

The monthly increase followed gains of 1.4% in September and 0.4% in August. Excluding food, energy and trade services, prices rose 0.5%, matching September’s increase, and were up 4.9% from a year earlier.

Goods prices rose 0.5% after jumping 2.5% in September. Food prices climbed 1.3%, while energy prices edged down 0.1%. Goods excluding food and energy rose 0.5% and accounted for more than 60% of the overall increase in goods prices. Compared with a year earlier, goods prices were up 10.2%, the largest gain since October 2022.

Prices for services rose 0.2%, their fifth consecutive monthly increase. Transportation and warehousing costs climbed 2%, accounting for three-quarters of the increase in services prices. Truck freight prices rose 3.9%, while trade services margins fell 0.2%.