U.S. Producer Inflation Reaches Highest Annual Rate Since 2022

The U.S. producer price index (PPI) rose 6.5% in October from a year earlier, reaching its highest annual rate since November 2022. The figure was 0.1 percentage point below the 6.6% market expectation. That put the annual reading just under forecasts even as it reached its strongest level in nearly four years.

On a monthly basis, the PPI increased 0.3%, compared with the 0.4% expected. That was also a 0.1 percentage point miss. Both October measures came in below expectations by the same margin, with the annual rate marking a nearly four-year high and the monthly increase falling short of its forecast.

The two readings describe different time comparisons: the annual figure was 6.5%, while the monthly figure was 0.3%. Their respective forecasts were 6.6% and 0.4%. In other words, the annual rate reached its highest point since November 2022, but neither measure matched expectations. October's central contrast is between the nearly four-year high and a smaller-than-expected monthly gain.