Producer Price Index drops 0.5% in October - Largest decline since April 2020

The core producer price index rose 0.1% in October, down from an 0.3% gain in the prior month.

The numbers: The producer price index fell 0.5% in October, the Labor Department said Tuesday. That’s down from an 0.4% increase in October and the largest decrease since April 2020.

Economists polled by The Wall Street Journal had forecast a 0.1% advance.

The core producer price index, which excludes volatile food, energy prices, and trade services rose 0.1% in October, down from an 0.3% gain in the prior month.

• Over the past year, headline PPI is up 1.3% in October down from 2.2% in the prior month.
• Core prices are up 2.9% from a year earlier, down from 3% in October.

Key details: The cost of goods fell 1.4% in October after a 0.8% gain in the prior month.

• The cost of services was flat last month, down from 0.2% gain in September.
• Energy prices fell 6.5% in October, down from a 3.1% gain in the prior month.
• Wholesale food prices fell 0.2% after a 0.7% rise in the prior month.

Big picture: The data was flattered by a drop in energy and food prices. But inflation in the pipeline is looking soft.