U.S. producer prices for final demand rose 0.3 percent in October after a 1.4 percent increase in September, the Bureau of Labor Statistics said Friday². Over the 12 months ended in October, the unadjusted index was up 6.5 percent, the largest such rise since November 2022².

The Associated Press, citing the same report, said the monthly gain was smaller than September’s but that the yearly rate remained well above the Federal Reserve’s 2 percent inflation goal¹. AP also said Tuesday’s consumer price index accelerated in October and that some Fed officials had indicated further increases in the short-term policy rate may be needed¹.

BLS said final-demand goods prices rose 0.5 percent in October and services 0.2 percent². Food prices in final demand increased 1.3 percent while energy edged down 0.1 percent; diesel fuel fell 7.9 percent². Truck transportation of freight rose 3.9 percent and accounted for most of the services increase². Final demand less foods, energy and trade services rose 0.5 percent on the month and 4.9 percent over 12 months².

AP attributed part of the monthly cooling to energy prices leveling off and cited economist Ben Ayers of Nationwide as saying food and transportation costs climbed as fuel prices moved through the economy¹. AP also said electronic-component prices rose 4.2 percent and industrial-chemical prices 3.1 percent in the month¹. BLS listed a 3.9 percent rise in basic organic chemicals among goods details².

The Associated Press said the next closely watched inflation reading is the personal consumption expenditures price index, which the Federal Reserve targets at 2 percent¹.