Stock Market Cafe
  • Home
  • Trading News
  • Email Whitelisting
  • Privacy Policy
  • Home
  • Trading News
  • Email Whitelisting
  • Privacy Policy
No Result
View All Result
Stock Market Cafe
No Result
View All Result
Home Trading News

Wholesale prices rose 8.6% year over year in October, tied for highest ever

by
November 9, 2021
in Trading News
0
0
SHARES
0
VIEWS
Share on FacebookShare on Twitter

Wholesale prices rose 8.6% from a year ago in October, their highest annual pace in records going back nearly 11 years, the Labor Department said Tuesday.

The government’s producer price index, which serves as a gauge of final demand prices from goods producers, rose 0.6% for the month, in line with Dow Jones estimates and an indicator that inflation pressures are continuing to burden the U.S. economy. The monthly pace was faster than the 0.5% increase in September.

RELATED POSTS

Stripe tells employees it will decide on an IPO within the next year

The rally that won’t quit says it’s not all about the Fed — listen to Thursday’s ‘Homestretch’

Stripping out food, trade and energy prices, the index increased 0.4% month over month, slightly below the 0.5% estimate but an elevated pace from September’s 0.1% gain. On a year-over-year basis, core producer prices increased 6.2%. The year-over-year records go back to November 2010.

Elevated demand for goods over services again led the inflation story, with the price rises for final demand goods accounting for more than 60% of the index’s increase. Goods prices rose 1.2% compared with just a 0.2% increase for services, while construction prices jumped 6.6%.

One-third of the increase in goods prices came from soaring gasoline, with prices rising 6.7%. Beef and veal prices represented the other side of the ledger, posting a collective decline of 10.3%. The index for light motor trucks, a key driver of inflation this year, moved lower as did residential electric power.

On the services side, more than 80% of the increase in final demand services price increases came from autos and auto parts, which increased 8.9%.

Final demand prices are a gauge of what goods producers receive in sales for personal consumption, capital investment and to government, as well as for exporting.

The PPI report is one of two key inflation readings this week. The Labor Department on Wednesday will release the October consumer price index, which is expected to show a 0.6% monthly increase for all goods, translating into a 5.9% annual gain.

Federal Reserve officials are watching the inflation data closely. Policymakers generally believe price increases are driven primarily by factors such as supply chain shocks tied to the coronavirus pandemic, and will ease some next year and eventually drift back toward the central bank’s 2% annual target.

However, the Fed has conceded that inflation pressures are lasting longer than thought, and last week voted to begin reducing the pace of its monthly bond purchases.

Goldman Sachs economists over the weekend noted the “inflation overshoot will likely get worse before it gets better.”

Markets have been pricing in more aggressive interest rate hikes than the Fed is currently indicating. Citigroup economists project that the central bank will have to step up its planned $15 billion a month pace of bond purchase reductions, with an acceleration to $22.5 billion a month, meaning the quantitative easing program would wind down completely by April 2022.

That would then allow the Fed to start increasing rates should inflation continue to be a problem.

ShareTweetPin

Related Posts

Stripe tells employees it will decide on an IPO within the next year

by
January 26, 2023
0

Stripe co-founder and CEO, Patrick Collison Manuel Blondeau | Getty Images Stripe, the fintech company once valued at $95 billion...

The rally that won’t quit says it’s not all about the Fed — listen to Thursday’s ‘Homestretch’

by
January 26, 2023
0

Jim Cramer says that people just seem to want to own stocks this year. More soft-landing hopes after morning economic...

Tesla’s bounce on quarterly results can teach us something about mega-cap growth names

by
January 26, 2023
0

This is the daily notebook of Mike Santoli, CNBC's senior markets commentator, with ideas about trends, stocks and market statistics....

NBCUniversal expects Peacock losses to peak this year as streamer slowly adds subscribers

by
January 26, 2023
0

In this article CMCSA Follow your favorite stocksCREATE FREE ACCOUNT The NBCUniversal Inc. Peacock streaming service is displayed on a...

Microsoft’s AI push has some analysts raving about the stock even after lackluster earnings

by
January 26, 2023
0

Microsoft 's earnings report earlier this week was largely considered dissatisfying to analysts. But the tech giant's focus on artificial...

Next Post

Cash in, fraud out: Criminals target bitcoin ATMs as crypto popularity surges

Ripple to launch crypto service for financial companies amid legal battle with the SEC

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

email

Get the daily email about stock.

Please Enter Your Email Address:

By opting in you agree to our Privacy Policy. You also agree to receive emails from us and our affiliates. Remember that you can opt-out any time, we hate spam too!

MOST VIEWED

  • Crocs sees fourth-quarter sales up 42%, CEO Andrew Rees says 2021 was ‘exceptional year’

    0 shares
    Share 0 Tweet 0
  • Biden didn’t accept Putin’s ‘red lines’ on Ukraine – here’s what that means

    0 shares
    Share 0 Tweet 0
  • Buying a car from the factory sounds expensive, but it can actually save you money. Here’s how to do it.

    0 shares
    Share 0 Tweet 0
  • The states that won’t tax military retirement in 2022

    0 shares
    Share 0 Tweet 0
  • Roth TSP vs. Roth IRA: How Do They Compare?

    0 shares
    Share 0 Tweet 0
  • Home
  • Trading News
  • Email Whitelisting
  • Privacy Policy
All rights reserved by www.stockmarket-cafe.com
No Result
View All Result
  • Home
  • Trading News
  • Email Whitelisting
  • Privacy Policy

All rights reserved by www.stockmarket-cafe.com