Core producer price index comes in flat in October, as services index slips

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• October Producer Price Index: +0.2% vs. +0.5% consensus and +0.2% (revised from +0.4%).
• +8.0% Y/Y vs. +8.3% consensus and +8.4% prior (revised from +8.5%).
• Core PPI: 0.0% vs. +0.4% consensus and +0.2% prior (revised from +0.3%).
• +6.7% Y/Y vs. +7.2% consensus and +7.1% prior (revised from 7.2 %).
• The index for final demand goods rose 0.6% in October, the largest advance since a 2.2% increase in June. Most of the October rise stems from a 2.7% jump in final demand energy, with the index for gasoline rising 5.7% for the month.
• Other prices that rose in October were diesel fuel, fresh and dry vegetables, residential electric power, chicken eggs, and oil field and gas machinery.
• The index for passenger cars fell 1.5% in the month. Prices for gas fuels and for processed young chickens also declined.
• During the month, the index for final demand services fell 0.1%, the first decline since a 0.2% slip in November 2020. Margins for final demand trade services fell 0.5%. Prices for final demand transportation and warehousing services slipped 0.2%.
• Last week, the consumer price index rose 0.4% in October, less than the +0.7% expected.