The Clap
The producer price index (PPI) increased 8% YoY, coming in lower than analysts’ expectations and less than the 8.4% increase in September.
The Deets
During October 2022, the PPI increased by 0.2%, less than the expected 0.4%.
Stripping out food and volatile, energy, and trade services, the PPI increased to 5.4% annually.
So What
The less-than-expected increase signals that inflation has begun slowing down, following the CPI report last week.
The Fed’s interest rate hikes are finally beginning to have an impact on inflation, after four consecutive 0.75% interest rate hikes.
Now What
The US markets responded positively to the news, with the Dow Jones, Nasdaq, and S&P 500 all recording gains at the end of yesterday’s session.
