Investing.com – Producer price inflation in the U.S. eased more-than-expected in October, official data showed on Tuesday.
In a report, the Bureau of Labor Statistics said that PPI declined by a seasonally adjusted 0.3% in October, compared to expectations for a 0.2% drop.
Producer prices rose by an unrevised 0.8% in September.
Year-over-year, the producer price index rose at an annualized rate of 5.9% in October, after advancing at a rate of 6.9% in September. Analysts had expected producer prices to increase at a rate of 6.3%.
The more closely followed core producer price index was flat in October, confounding expectations for a 0.1% gain. Core PPI rose by 0.2% in September.
Core prices are viewed by the Federal Reserve as a better gauge of longer-term inflationary pressure because they exclude the volatile food and energy categories.
Following the release of the data the U.S. dollar held on to gains against the euro, with EUR/USD slumping 0.6% to trade at 1.3551.
Meanwhile, stock index futures pared losses following the data. The Dow Jones Industrial Average futures pointed to a loss of 0.35%, S&P 500 futures shed 0.25%, while the Nasdaq 100 futures indicated a decline of 0.3%.
In a report, the Bureau of Labor Statistics said that PPI declined by a seasonally adjusted 0.3% in October, compared to expectations for a 0.2% drop.
Producer prices rose by an unrevised 0.8% in September.
Year-over-year, the producer price index rose at an annualized rate of 5.9% in October, after advancing at a rate of 6.9% in September. Analysts had expected producer prices to increase at a rate of 6.3%.
The more closely followed core producer price index was flat in October, confounding expectations for a 0.1% gain. Core PPI rose by 0.2% in September.
Core prices are viewed by the Federal Reserve as a better gauge of longer-term inflationary pressure because they exclude the volatile food and energy categories.
Following the release of the data the U.S. dollar held on to gains against the euro, with EUR/USD slumping 0.6% to trade at 1.3551.
Meanwhile, stock index futures pared losses following the data. The Dow Jones Industrial Average futures pointed to a loss of 0.35%, S&P 500 futures shed 0.25%, while the Nasdaq 100 futures indicated a decline of 0.3%.