The pace of U.S. producer price gains slowed in October, indicating an economy that is still operating well-below capacity after being ravaged by lockdowns and social distancing aimed at stemming the coronavirus pandemic.
The producer price index for final demand climbed three-tenths of a percent last month after rising four-tenths in September. In the 12 months through October, the PPI increased half a percent, a bit higher than the four-tenths in September.
The index for final demand goods increased 0.5 percent in October, the sixth consecutive rise. Nearly three-fourths of the October advance is attributable to prices for foods, which jumped 2.4 percent. Prices for light trucks and cars declined.
The index for final demand services rose 0.2 percent in October, a slower increase than the 0.4 percent in September. Nearly 40 percent of the broad-based October increase can be traced to prices for final demand transportation and warehousing services,