The Producer Price Index for final demand fell 0.5% in October on a seasonally adjusted basis, according to the U.S. Bureau of Labor Statistics. The October decline is the largest decrease in final demand prices since a 1.2% drop in April 2020. Final demand prices rose 0.4% in September and 0.8% in August. On an unadjusted basis, the index for final demand advanced 1.3% for the 12 months ended in October.
The index for final demand less foods, energy, and trade services advanced 0.1% in October, the fifth consecutive rise. For the 12 months ended in October, prices for final demand less foods, energy, and trade services moved up 2.9%.
Prices for final demand goods in October fell 1.4% in October, the first decrease since falling 1.5% in May. A major factor in the October decline was the index for final demand energy, which dropped 6.5%. Prices for final demand foods decreased 0.2%. The index for final demand goods less foods and energy edged up 0.1%.
Prices for final demand services were unchanged in October following six consecutive advances. In October, increases of 1.5% in the index for final demand transportation and warehousing services and 0.1% in prices for final demand services less trade, transportation, and warehousing offset a 0.7% decline in margins for final demand trade services.
Read the BLS release.
