Producer prices in the US are rising less quickly
High inflationary pressure continues to weigh on producer prices in the US – but not as much as in previous months.
After consumer prices rose, producer prices did not rise as strongly in October.
Photo: James McDonald/Bloomberg
There are growing indications that robust inflation in the US is ebbing. After consumer prices, producer prices did not rise as strongly in October. It increased 8.0% over the same month a year ago, the Labor Department announced Tuesday in Washington. Economists polled by Reuters had expected 8.3 percent, down from 8.4 percent in September.
In the statistics, prices are listed from the factory gate – that is, before the products were further processed or traded. They provide early signals of the development of consumer prices. It increased by 7.7% in October after the inflation rate was 8.2% in the previous month.
However, the Fed’s stabilization target of 2.0% remains elusive. US monetary authorities aim for an inflation rate of 2.0%. The Federal Reserve has been raising interest rates in unusually large increments for several months to keep inflation in check. Recently, it has increased again by three-quarters of a percentage point. It is currently in a range of 3.75 to 4.00%.
The Fed is preparing to step up but has indicated that it will soon slow some of the pace of tightening. Recently, Fed Vice Chairman Lael Brainard’s comments also indicated that the central bank could only raise the key interest rate by half a percentage point in December. In an interview with Bloomberg, she called the sudden sharp drop in the inflation rate by half a percentage point “reassuring.”
Reuters
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