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WASHINGTON – A gauge of US corporate prices rose in October at the fastest pace in almost six years, suggesting that inflation could pick up after the summer slowdown.
The producer price index, which measures the prices that companies charge for their goods and services, rose 0.6% in October, seasonally adjusted, compared to the previous month, announced on Friday. Department of Labor. This is the largest monthly increase since September 2012.
Excluding the often volatile food and energy categories, prices rose 0.5% in October compared with the previous month. Excluding food, energy and a volatile margin gauge called foreign trade services, prices rose 0.2% last month.
Economists forecast monthly increases in overall prices of 0.3%, 0.2% for non-food and energy prices and 0.2% for non-food, energy and trade prices.
Compared with the previous year, the general producer price index rose by 2.9% in October, while non-food and energy prices rose 2.6% and prices excluding food , energy and commercial services had increased 2.8%.
Last month's price increase was driven by higher prices for services, up 0.7%, the largest monthly increase since the beginning of 2016.
In the longer term, annual gains in the overall index have risen since the beginning of 2016, while the two core measures have also increased.
Producer price measurement usually follows the same trends as other broad indicators of inflation, although it does not always translate into the price consumers pay. The price index of personal consumption expenditure, a general gauge of inflation closely monitored by the Federal Reserve, indicated controlled inflation over several months until September.
PCE prices increased by 0.1% from August to September compared to August, a fourth consecutive month in which the indicator was below the 0.165% monthly rate required to meet the annual target of 2% set by the Fed.
Write to Sharon Nunn at [email protected] and Paul Kiernan at [email protected]
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