U.S. Producer Prices Rise More than Expected in October By Investing.com
Investing.com – U.S. producer price inflation and its core reading increased more than expected in October, surprising forecasts that were looking for factory gate to ease from a month earlier, official data showed on Tuesday.
In a report, the Commerce Department said that increased 0.4% last month, topping the forecast for a 0.1% gain and matching September’s increase.
Year-over-year, the (PPI) rose 2.8% in October, compared to expectations for a gain of 2.4% and higher than the 2.6% increase in the preceding month.
The , that excludes food and energy, also rose 0.4% in October, beating forecasts for a gain of 0.2% while matching the prior month’s advance.
increased at an annualized rate of 2.4% last month, above forecasts for a 2.3% increase and the gain of 2.2% in September.
Core prices are viewed by the Federal Reserve as a better gauge of longer-term inflationary pressure because they exclude the volatile food and energy categories. Furthermore, when producers pay more for goods, they are more likely to pass price increases on to the consumer, so PPI could be considered a leading indicator of inflation.
After the report, was trading at 1.1744 from around 1.1746 ahead of the release of the data, was at 1.3097 from 1.3105 earlier, while was at 113.50 from 113.48 earlier.
The , which tracks the greenback against a basket of six major rivals, was at 94.02, compared to 94.01 ahead of the report.
Meanwhile, U.S. stock futures pointed to a lower open. The fell 0.16%, the lost 0.19%, while the edged down 0.08%.
Elsewhere, in the commodities market, traded at $1,274.19 a troy ounce, compared to $1,275.84 ahead of the data, while traded at $56.51 a barrel from $56.45 earlier.
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.