Wholesale Inflation Hits Lowest Level Since April 2020
Summary from the AllSides News Team
Key Details: Wall Street had been expecting a 0.1% increase in wholesale prices. Those prices, measured by the producer price index, serve as an indicator of the prices that consumers ultimately pay.
Key Quote: “The Fed will welcome the reprieve, after producer prices recorded a 4.9% annualized gain in [the third quarter], and coupled with yesterday’s CPI report, it bolsters the case for no further rate increases,” wrote Matthew Martin, US economist for Oxford Economics.
For Context: On Tuesday, the Labor Department said that the Consumer Price Index (CPI) was unchanged in October. Wall Street rallied, believing that the Federal Reserve would not raise interest rates this year and might cut rates in the first six months of 2024.
How the Media Covered it: Some left-rated sources noted that the drop in the producer price index was a positive development for the Federal Reserve, which has been working to rein in high inflation. Some right-rated outlets noted that many economists believe that the Federal Reserve is done raising interest rates, given the recent decline in inflation.
Featured Coverage of this Story
From the LeftThis key US inflation gauge fell last month by the most since 2020
US wholesale inflation cooled off in October, reversing a three-month trend that had seen the cost of energy push up prices, according to data released Wednesday by the Bureau of Labor Statistics.
The Producer Price Index, which measures the average price changes that businesses pay to suppliers, fell 0.5% on a monthly basis. It’s the largest monthly drop since April 2020, when the rapidly spreading Covid-19 virus caused a sharp economic contraction.
October’s decline also marks a sharp turnabout from the 0.4% monthly jump in September, when food and energy prices...
From the RightWholesale inflation unexpectedly tumbles 0.5% in October, biggest drop in 3 years
Inflation at the wholesale level posted a surprise decline in October, the latest sign that high consumer prices are beginning to loosen their stranglehold on the U.S. economy.
The Labor Department said Wednesday that its producer price index, which measures inflation at the wholesale level before it reaches consumers, tumbled 0.5% in October from the previous month. On an annual basis, prices remain up 1.3% – a sharp drop from the 2.2% recorded in September.
In another sign that suggests high inflation is beginning to dissipate, core prices – which exclude the...
From the CenterWholesale prices fell 0.5% in October for biggest monthly drop since April 2020
Wholesale prices in October posted their biggest decline in 3½ years, providing another indication that the worst of the inflation surge may have passed.
The producer price index, which measures final-demand costs for businesses, declined 0.5% for the month, against expectations for a 0.1% increase from the Dow Jones consensus, the Labor Department reported Wednesday. The department said that was the biggest monthly decline since April 2020.
On a yearly basis, headline PPI posted a 1.3% increase, down from 2.2% in September.
Excluding food and energy, core PPI was unchanged, also below...