• Prior +0.5%
• PPI -9.4% vs -9.5% y/y expected
• Prior -12.4%

Looking at the breakdown, the increase largely comes from a push higher in energy prices (+1.0%) on the month. There was also an increase in prices for durable consumer goods (+0.1%) while prices remained stable for capital goods. Meanwhile, there were declines in the prices of non-durable consumer goods (-0.1%) and intermediate goods (-0.3%). If you strip out energy prices, producer prices actually declined by 0.2% in October.

This article was written by Justin Low at www.forexlive.com.