U.S. producer prices climb 0.6%, adding to inflation concerns
BNN Bloomberg
Prices paid to U.S. producers accelerated in October, largely due to higher goods costs, fueling concerns about the persistence of inflationary pressures in the economy.
Prices paid to U.S. producers accelerated in October, largely due to higher goods costs, fueling concerns about the persistence of inflationary pressures in the economy.
The producer price index for final demand increased 0.6 per cent from the prior month and 8.6 per cent from a year earlier, matching forecasts, Labor Department data showed Tuesday. The annual advance was the largest in figures back to 2010.
Excluding the volatile food and energy components, the so-called core PPI rose 0.4 per cent and was up 6.8 per cent from a year ago.
More than 60 per cent of the headline increase was due to goods, which jumped 1.2 per cent. Higher energy costs, including that for gasoline, drove the gain. The cost of services rose a more moderate 0.2 per cent for a second month, reflecting a further pullback in the cost of securities brokerages and investment advice.
The report underscores how transportation bottlenecks, materials shortages and increasing labor costs have sent prices soaring across the economy in recent months. Trucking freight costs jumped a record 2.5 per cent from September.
