Producer Prices Fell in October

Producer prices fell 0.4 percent in October, seasonally adjusted, after falling 0.5 percent in September according to the U.S. Bureau of Labor Statistics. Seventy percent of the October decrease was attributable to a decrease in prices for final demand services.

Prices for final demand goods fell 0.4 percent, the fourth consecutive month of decreases. Over one third of October’s goods index decline was attributable to prices for light motor trucks, which fell 1.8 percent during the month. Prices for final demand goods less foods and energy fell 0.3 percent, while prices for final demand foods fell 0.8 percent for the second consecutive month.

The index for final demand services fell 0.3 percent, primarily due to a decline in margins for fuels and lubricants retailing, which fell 15.8 percent. Prices for final demand transportation and warehousing increased 0.1 percent.  In contrast, final demand services less trade, transportation and warehousing fell 0.1 percent.

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