U.S. producer price growth stepped down in October by more than expected in the latest sign that inflationary pressures are beginning to ease.
The producer price index for final demand advanced 8% from a year ago, the smallest annual gain in more than a year, and 0.2% from month earlier, Labor Department data showed Tuesday.
The median estimates in a Bloomberg survey of economists called for a 8.3% annual increase and a 0.4% rise from the prior month.
The S&P 500 opened higher and Treasury yields eased, while the Bloomberg dollar index declined after the report.
Excluding the volatile food and energy components, the so-called core PPI was unchanged in October and rose 6.7% on an annual basis.
The data come on the heels of a smaller-than-expected monthly increase in the October consumer price index, which investors and Wall Street welcomed as a sign that the fastest price increases in decades are finally be starting to ebb.
After peaking in March at 11.7% on an annual basis, producer price growth has moderated amid improving supply chains, softer demand and a weakening in many commodities prices.
Excluding food and energy, costs of goods declined during the month, and services prices fell for the first time since 2020.
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