WASHINGTON (dpa-AFX) - A report released by the Labor Department on Friday showed producer prices in the U.S. increased by slightly less than expected in the month of October.
The Labor Department said its producer price index for final demand rose by 0.3 percent in October after surging by an upwardly revised 1.4 percent in September.
Economists had expected producer prices to climb by 0.4 percent compared to the 1.3 percent jump originally reported for the previous month.
The report also said the annual rate of producer price growth accelerated to 6.5 percent in October from 6.3 percent.
Producer prices grew at the fastest annual rate since soaring by 7.4 percent in November 2022, although the pace of growth came in slightly below the 6.6 percent spike economists had expected.
The weaker-than-expected monthly price growth partly reflected a modest decrease in energy prices, which edged down by 0.1 percent in October after skyrocketing by 10.0 percent in September.
Meanwhile, the report showed a continued surge in food prices, which shot up by 1.3 percent in October after jumping by 1.1 percent.
The sharp increase in food prices contributed to a 0.5 percent advance in prices for goods in October following a 2.5 percent surge in September.
The Labor Department said prices for services rose by a more modest 0.2 percent in October after jumping 1.0 percent in September.
A 0.2 percent dip in prices for trade services partly offset a 2.0 percent leap in prices for transportation and warehousing services. Prices for other services edged up by 0.2 percent.
The report also said core producer prices, which exclude prices for food, energy and trade services, climbed by 0.5 percent for the second consecutive month.
The annual rate of growth by core producer prices slowed to 4.9 percent in October from 5.0 percent in September.
'Producer prices were softer in aggregate during October as energy prices rolled over from their recent peaks,' writes Nationwide Senior Economist Ben Ayers. 'But costs for food and transportation climbed sharply as high fuel prices flow into other parts of the economy.'
He added, 'This creates further upward pressure for food and broader goods inflation ahead even as oil prices have cooled over the past few weeks.'
A separate report released by the Labor Department on Tuesday showed consumer prices in the U.S. increased by slightly more than expected in the month of October.
The Labor Department said its consumer price index rose by 0.4 percent in October after climbing by 0.6 percent in September. Economists had expected consumer prices to rise by 0.3 percent.
The report said core consumer prices, which exclude food and energy prices, climbed by 0.3 percent in October, matching the increases seen in the two previous months. Core prices were expected to edge up by 0.2 percent.
The Labor Department noted it was not able to provide data on the annual rate of consumer price growth due to the government shutdown in October 2025.
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