Wholesale prices for final demand goods fell 1.4% in October, largely driven by a major drop in the price of gasoline.
In the latest sign of disinflation, October U.S. wholesale prices posted their first monthly decline since May of this year and their sharpest monthly amount since the height of COVID-19, according to the Labor Department’s latest Producer Price Index published Nov. 15.
The report for that index showed that the PPI — which measures inflation before it reaches consumers — dropped 0.5% in October, marking its biggest one-month decline since April 2020. Year-over-year, October producer prices rose 1.3%, a major deceleration from September’s 2.2%, and the smallest annual increase since this past July.
October U.S. Core CPI Rise was Slowest in Almost 2 Years (Nov. 14)
Wholesale prices for final demand goods fell 1.4% in October from September, marking its first monthly decrease since May’s 1.5% decline. The Labor Department noted that 80% of the October decline was driven by a 15.3% drop in the price of gasoline.
The index for “core PPI”, which excludes volatile categories of foods, energy and trade services, increased 0.1% in October on a monthly basis for its fifth consecutive such rise. Year-over-year, core PPI increased 2.9%.
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Mike Hockett
Mike Hockett is MDM’s executive editor, having joined the publication in March 2022. He oversees MDM’s editorial content and direction, coordinates with contributing authors, conducts interviews with executives in the wholesale distribution space and serves as the editorial face of MDM at industry events. He has extensively covered the distribution and manufacturing sectors since 2014. Hockett earned a degree in print journalism from the University of Wisconsin-Eau Claire and works from his home in Madison, Wisconsin. He can be contacted at mike@mdm.com.
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