Producer prices in the US in October fell at the fastest pace since April 2020

In October, producer prices in the United States (PPI index) decreased by 0.5% compared to the previous month. This was the most significant decline since April 2020. Analysts' forecasts suggested an increase in prices by 0.1%.

The cost of goods also decreased last month – by 1.4%, which is the first decrease since May. The main reason for this was a 15.3% drop in gasoline prices, although tobacco prices, on the contrary, increased by 2.4%.

On a monthly basis, the PPI index increased by 1.3% in October after an increase of 2.2% in the previous month. 

The less volatile indicator, which excludes food and energy prices from the calculation (Core PPI index), increased by 2.4% year-on-year and remained at the same level compared to the previous month. Thus, the growth rates of both indicators slowed down, compared with the data for September, when they amounted to 2.7% and 0.2%, respectively.