Wholesale prices in October show🀅ed the largest drop in more than three yea♉rs, another signal that inflation may be dropping.

The Producer Price Index (PPI) for October declined for the first time since May, dropping 0.5%, reversing the 澳洲幸运5官方开奖结果体彩网:0.5% PPI increase in September. It’s the largest drop in PPI since the index showed prices plunging 1.2% in April 2020.

The reading came in lower than analysts' expectations of a 0.1% increase, mirroring 澳洲幸运5官方开奖结果体彩网:Tuesday’s𝓰 Consumer Price Inde﷽x inflation report which also showed a more-than-expected drop in price꧃s.

Today's report is another 澳洲幸运5官方开奖结果体彩网:economic indicator for Federal Reserve officials who are closely monitoring inflation indexes for signs of slowing price growth. Stocks were up after the news, as investors think it's more likely that the Fed has enough evidence to stop its campaign 💛of inflation-fighting interest rate hikes.

🐓 Unlike the CPI report, which looks at the prices that consumers pay at stores, the PPI looks at the prices that stores pay for goods and services. Wholesale prices can be an indicator that consumers may pay less at the retail level as stores pass on their extra costs or savings. 

Core PPI Dip🃏s, Lower Ga🎃s Prices Help Ease Reading

The core PPI reading, which strips out volatile food and energy prices, showed prices increasing by 0.1%, down from last month’s 0.3% increase. The year-over-year core PPI index was at 2.9% for October, a drop from the upwaꦓrd-revised 3.0% reading in September. 

The 澳洲幸运5官方开奖结果体彩网:deflationary reading in PPI was primarily driven by a 6.5% drop in energy demand, as gasoline prices fell 15.3%. The PPI report showed wholesale prices for goods fell 1.4%, while prices for services were unchanged. Airline passenger services rose 3.1% in October, which was balanced by a 2.9% decline in margins for machinery and vehicle wholesaling.