Macro
US producer prices rise 0.3% in October; annual rate holds at 6.5%
The Labor Department's pipeline-inflation gauge cooled from the prior month but stayed far above pre-2022 norms.
HedgeWeekly News Desk ·
US producer prices rose 0.3% in October on a seasonally adjusted basis, the Bureau of Labor Statistics said on Friday. Prices for final demand were 6.5% higher than a year earlier on an unadjusted basis. A live market page reported that economists had expected a 0.4% monthly rise, and that September's monthly gain was 1.3%.
Goods prices rose 0.5% on the month and 10.2% on the year. Services prices rose 0.2% on the month; the release gave no annual figure for services in the section reviewed. The bureau's core measure, which strips out food, energy and trade margins, climbed 0.5% on the month and 4.9% on the year.
The data landed as Treasury yields climbed. The 10-year yield reached as high as 5.17% during Friday's session, its highest since October, according to the same live page, which put the annual PPI rate at its largest since November 2022.
For funds and allocators, the split matters more than the headline. A monthly print below forecasts eases the near-term worry, but a 10.2% annual rise in goods prices and a 4.9% core-ex-trade rate show cost pressure still building upstream of consumers. Watch how much reaches retail prices in the coming CPI data, and how rate-sensitive positions respond if long yields stay above 5%.