Wholesale inflation eases to 8% in October

WASHINGTON — Prices at the wholesale level rose 8% in October from a year ago, the fourth consecutive decline and the latest sign that inflation pressures in the United States are easing from painfully high levels.

The annual figure is down from 8.4% in September.

On a monthly basis, the government said Tuesday that its producer price index, which measures costs before they reach consumers, rose 0.2% in October from September. That was same as in the previous month, which was revised down from an initial reading of 0.4%.

The figures came in lower than economists expected and make it more likely that the Federal Reserve will increase its benchmark interest rate in smaller increments. It has hiked its short-term rate by three-quarters of a point for four consecutive meetings, but economists now increasingly foresee an increase of a half-point at its December meeting.

Most of the monthly increase reflected higher gas prices at the wholesale level, which rose 5.7% just in October.

Excluding the volatile food and energy categories, core producer prices were unchanged in October from September, the lowest reading in nearly two years. Core prices increased 6.7% last month from a year ago, down from a 7.1% annual rate in September.

The cost of services, such as hotels, air travel, and health care, slipped 0.1% in October from September, the first drop since November 2020.

The report follows last week’s betterknown consumer price index, which showed that year-over-year inflation cooled to a slower-than-expected 7.7% in October, down from 8.2% in September.