The US Producer Price Index (PPI) growth slowed year-on-year in October more than expected. There are new signs that inflationary pressures are beginning to ease.
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Overall PPI (line graph), Core PPI (bar graph)
Source: US Bureau of Labor Statistics
October’s consumer price index (CPI) last week also showed weaker-than-expected growth, seen by markets as a positive sign that the pace of rapid inflation is finally beginning to slow.
US CPI, headline and core CPI growth lower than expected – room to slow rate hikes (3)
US Composite PPI peaked at 11.7% year-on-year in March, but growth slowed. Improvements in supply chains, slowing demand and a reduction in prices for many goods are behind this. Commodity prices fell in October, excluding food and energy. Service prices fell negative for the first time since 2020.
Bloomberg TV report on PPI
Source: Bloomberg
Markets expect the Fed to slow the pace of its rate hikes soon as it watches inflation data closely. But officials have not stopped fighting inflation.
Until now, many companies have passed on the majority of their input and labor costs to consumers, but recently some companies have shown a reluctance to raise prices more aggressively against a backdrop of economic uncertainty.
Commodity prices rose 0.6% from the previous month in October. It reflected rising food and energy prices. Prices of services fell by 0.1%. Trade, transport and warehousing costs have fallen.
The PPI, which excludes food, energy and trade services, rose 0.2% from the previous month. The year-on-year increase was 5.4%, the lowest growth since May 2021.
“October’s PPI data showed a slowdown in the pace of price appreciation in final demand for goods and services,” said Bloomberg Economics economist Eliza Winger. It suggests that,” analyzed.
The cost of intermediate goods, which reflect prices at a relatively early stage in the production process, has fallen. Excluding food and energy, intermediate goods fell 0.8%, the biggest drop since the start of the coronavirus pandemic.
See the table for detailed statistics.
Original title:US Producer Prices Cool Back More Than Forecast on CPI’s Heels (抜粋）
(Add background and economist comments and update)
