U.S. producer prices rose 0.3% in October after a revised 1.4% jump in September, the U.S. Bureau of Labor Statistics reported Friday.
Over the past 12 months, prices climbed 6.5%, the biggest annual gain since a 7.4% increase in November 2022. The annual figures are not seasonally adjusted; the monthly figures are.
A narrower measure leaves out foods, energy and trade services. It rose 0.5% in October, matching September, and stood 4.9% above its level a year earlier.
Goods Prices
Prices for final demand goods rose 0.5% after a 2.5% surge in September. Goods other than foods and energy also rose 0.5% and made up more than 60% of the October increase.
Food prices rose 1.3%. Energy prices slipped 0.1%.
Goods prices were up 10.2% over 12 months. That’s the largest annual gain since a 10.5% rise in October 2022.
Basic organic chemicals rose 3.9%. Prices also went up for fresh and dry vegetables, gas fuels, jet fuel and processed young chickens. Diesel fuel fell 7.9%, and pork and passenger cars also cost less.
Services and Trucking
Services prices rose 0.2%, their fifth monthly increase in a row. Prices for hauling freight by truck rose 3.9% and accounted for more than 80% of the services gain.
Transportation and warehousing services as a whole rose 2%, accounting for three-fourths of the services increase. Services outside trade, transportation and warehousing rose 0.2%.
Trade margins fell 0.2%. These indexes measure changes in the margins wholesalers and retailers receive. Margins for machinery and vehicle wholesaling dropped 4.2%.
Prices for airline passenger services and system software publishing also declined. Hospital outpatient care and traveler accommodation prices increased, as did margins for food and alcohol wholesaling and fuels and lubricants retailing.
Earlier Stages of Production
Processed goods sold to businesses as production inputs rose 0.4%, the third straight monthly increase. They were up 14.6% from a year earlier, the steepest annual rise since July 2022.
Basic organic chemicals accounted for more than 40% of the October gain in processed goods.
Unprocessed goods fell 3.1%, their biggest drop since June. Unprocessed energy materials fell 7.7%, and crude petroleum fell 10.3%. Raw milk went the other way, up 8.2%.
Even after the October decline, unprocessed goods were 16.9% above their level a year earlier.
Services purchased as business inputs rose 0.6% after a 1% increase in September. They were up 6.8% over the year, the most since November 2022.
Margins for metals, minerals and ores wholesaling jumped 9.2%, accounting for 30% of the October increase in those business services.
Prices for inputs bought by stage 4 industries, which primarily produce goods and services for final demand, rose 0.4%. Their annual increase reached 8%, the largest since September 2022.
Revisions and Next Report
The PPI tracks prices received by domestic producers. It differs from the Consumer Price Index, which measures prices from the buyer’s perspective and includes imports.
The bureau revised its data for June through September to include late reports and corrections from survey respondents.
The November report is scheduled for 8:30 a.m. Eastern time on Tuesday, Dec. 15.