From the Associated Press via U.S. News & World Report, November 15:
U.S. wholesale prices fell sharply last month as inflationary pressure continued to ease in the face of a year and a half of higher interest rates
U.S. wholesale prices fell sharply last month as inflationary pressure continued to ease in the face of a year and a half of higher interest rates.
The Labor Department reported Wednesday that its producer price index — which measures inflation before it hits consumers — dropped 0.5% in October from September, biggest drop since April 2020.
On a year-over-year basis, producer prices were up 1.3% from October 2022.
Inflation last year reached heights not seen in four decades, prompting the Fed to raise its benchmark 11 times since March 2022....
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Here's the Bureau of Labor Statistics:
PPI for final demand declines 0.5% in October; goods fall 1.4%, services unchanged
...Final Demand
Final demand goods: Prices for final demand goods moved down 1.4 percent in October, the first decrease since falling 1.5 percent in May. A major factor in the October decline was the index for final demand energy, which dropped 6.5 percent. Prices for final demand foods fell 0.2 percent.
Conversely, the index for final demand goods less foods and energy edged up 0.1 percent.
Product detail: Over 80 percent of the October decline in the index for final demand goods is attributable to a 15.3-percent drop in prices for gasoline. The indexes for diesel fuel; hay, hayseeds, and oilseeds; home heating oil; liquefied petroleum gas; and light motor trucks also fell. (In accordance with usual practice, most new-model-year passenger cars and light motor trucks were introduced into the PPI in October. See Report on Quality Changes for 2024 Model Vehicles at www.bls.gov/web/ppi/ppimotveh.htm.) In contrast, prices for tobacco products increased 2.4 percent.
The indexes for butter and for residual fuels also moved up. (See table 2.)
Here is what is working its way through the PPI and into the CPI:
The drop in wholesale gasoline prices actually preceded the fall in U.S. crude prices