The
Labor Department reported on Tuesday the U.S. producer-price index (PPI) rose
0.6 percent m-o-m in October, following an unrevised 0.5 percent m-o-m increase
in September.
For
the 12 months through October, the PPI jumped 8.6 percent, the same pace as in the previous month.
Economists
had forecast the headline PPI would rise 0.6 percent m-o-m last month and 8.7 percent
over the past 12 months.
According
to the report, over 60 percent of the October gain in the index for final
demand can be traced to a 1.2-percent m-o-m rise in prices for final demand
goods. In addition, the index for final demand services went up 0.2 percent
m-o-m, and prices for final demand construction surged 6.6 percent m-o-m.
Excluding
volatile prices for food and energy, the PPI advanced 0.4 percent m-o-m and soared
6.8 percent over 12 months (the largest increase on record). Economists had
forecast gains of 0.5 percent m-o-m and 6.8 percent y-o-y.