Current:Home > FinanceUS producer prices slide 0.5% in October, biggest drop since 2020-LoTradeCoin
US producer prices slide 0.5% in October, biggest drop since 2020
View Date:2024-12-24 08:50:35
WASHINGTON (AP) — U.S. wholesale prices fell sharply last month as inflationary pressure continued to ease after 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, the first decline since May and biggest since April 2020. On a year-over-year basis, producer prices rose 1.3% from October 2022, down from 2.2% in September and the smallest gain since July.
Excluding volatile food and energy costs, so-called core consumer prices were unchanged from September to October and rose 2.4% from a year earlier. The year-over-year gain in core producer prices was the smallest since January 2021.
The wholesale price of goods fell 1.4% from September to October, pulled down by a 15.3% drop in the price of gasoline. Services prices were unchanged.
Inflation last year reached heights not seen in four decades, prompting the Fed to raise its benchmark interest rate 11 times since March 2022.
As borrowing costs have risen, inflation has decelerated sharply. Year-over-year wholesale inflation, for instance, has dropped since hitting 11.7% in March 2022. On Tuesday, the Labor Department reported that its consumer price index was unchanged from September to October and up 3.2% from a year earlier — smallest year-over-year increase since June. But consumer inflation is still coming in above the Fed’s 2% target.
Despite higher interest rates, the U.S. economy and job market have remained resilient. The combination of a sturdy economy and decelerating inflation has raised hopes that the Fed can manage a so-called soft landing — raising rates just enough to tame inflation without tipping the economy into recession.
The Fed hasn’t raised its benchmark rate since July, and many economists believe its rate-hike campaign is over.
Commenting on last month’s drop in producer prices, Matthew Martin of Oxford Economics said: “The Fed will welcome the reprieve ... and coupled with yesterday’s CPI report, it bolsters the case for no further rate increases.’'
veryGood! (35786)
Related
- Wisconsin’s high court to hear oral arguments on whether an 1849 abortion ban remains valid
- Kourtney Kardashian posts first look at new baby: See the photo
- Here's what to know about the collapse of China's Evergrande property developer
- Russian figure skaters to get Olympic team bronze medals ahead of Canada despite Valieva DQ
- Why California takes weeks to count votes, while states like Florida are faster
- Man gets 40 years to life for shooting bishop and assaulting the bride and groom at a wedding
- Minnesota trooper accused of fatally shooting motorist Ricky Cobb II makes first court appearance
- Police say Minnesota man dressed as delivery driver in home invasion turned triple homicide
- Amazon Prime Video to stream Diamond Sports' regional networks
- Massachusetts man arrested for allegedly threatening Jewish community members and to bomb synagogues
Ranking
- Are Dancing with the Stars’ Jenn Tran and Sasha Farber Living Together? She Says…
- Russian skater Kamila Valieva banned four years over doping, ending 2022 Olympic drama
- These images may provide the world's first-ever look at a live newborn great white shark
- Russian skater Kamila Valieva banned four years over doping, ending 2022 Olympic drama
- Man Found Dead in Tanning Bed at Planet Fitness Gym After 3 Days
- Who Is Pookie? Breaking Down the TikTok Couple Going Viral
- Georgia state trooper dies after hitting interstate embankment while trying to make traffic stop
- Changing of the AFC guard? Nah, just same old Patrick Mahomes ... same old Lamar Jackson
Recommendation
-
Catholic bishops urged to boldly share church teachings — even unpopular ones
-
Officials say 1 policeman, 6 insurgents killed as rebels launch rocket attacks in southwest Pakistan
-
Kourtney Kardashian posts first look at new baby: See the photo
-
Wisconsin babysitter charged with killing family’s chihuahua is facing up to 4 years in prison
-
The ancient practice of tai chi is more popular than ever. Why?
-
Multiple propane tanks explode after fire breaks out at California Sikh temple
-
US and China launch talks on fentanyl trafficking in a sign of cooperation amid differences
-
Norfolk Southern is 1st big freight railway to let workers use anonymous federal safety hotline