MNI DATA IMPACT: US October PPI Above-Expected 0.4%, Energy +2.8%>

--Core PPI +0.3% Above-Expected; Ex. Food, Energy, Trade +0.1%

By Alexandra Kelley

     WASHINGTON (MNI) - The October PPI data released Thursday 

were higher than expected, with headline PPI rising by 0.4% and core PPI 

rising by 0.3%, both a tenth above Bloomberg forecasts. 

     The headline figure was the highest since April 2019, and was 

bolstered by a 0.8% rise in trade services and a rebound in energy 

prices. 

     Here are some of the key takeaways from the data released Thursday: 

     - October PPI increased by 0.423% unrounded month/month as energy 

increased by 2.8%. Food also rose 1.3%, trade services were up by 0.8%, 

and the core rose by 0.3%. 

     - The year/year rate for overall PPI slipped to 1.1% from a 1.4% 

gain seen in September, while the year/year rate for core prices fell to 

1.6% from 2.0% in September. The measure also excluding trade prices saw 

a rise to 0.1% month/month from a flat reading, yet decreased to 1.5% 

year/year from a 1.7% gain in September.  

     - Core PPI was 0.254% unrounded, on the low end on the 0.3% 

reading. The gain was held down by a 15.7% decline in iron and steel 

scrap, which was the biggest fall for the category since October 2015. 

     - Energy prices spiked by 2.8% in October after falling two 

consecutive months. Gasoline prices were up 7.3%. PPI excluding only 

energy posted a 0.3% increase. 

     ** MNI Washington Bureau: 202-371-2121 ** 

[TOPICS: MAUDS$,MT$$$$,M$U$$$,MAUDR$]