WASHINGTON — U.S. wholesale prices rose 0.3% in October, a smaller gain than economists expected, but the annual rate climbed to 6.5%, the highest since November 2022, the Bureau of Labor Statistics reported Friday, Nov. 13.[1]
Related: Consumer Prices Rose 0.4% in October as Food Costs Jumped.
What the report shows
The producer price index measures what domestic producers receive for their goods and services before they reach consumers. Economists surveyed by Dow Jones had expected a 0.4% monthly increase.[1]
Core producer prices, which leave out food and energy, also rose 0.3%, in line with forecasts. A narrower measure that also removes trade services rose 0.5%.[1]
The annual rate of 6.5% was up 0.2 percentage point from the month before.[1]
Goods lead the increase
Goods prices rose 0.5% in October and were up 10.2% from a year earlier, the largest 12-month gain since October 2022. Services prices rose 0.2%, with most of that tied to transportation and warehousing, including a 3.9% jump in truck freight.[1]
Prices earlier in the supply chain also posted multi-year highs. Processed goods for intermediate demand were up 14.6% from October 2025, the largest annual gain since July 2022.[1]
What it means for the Fed
The report lands a few weeks before the Federal Reserve meets on Dec. 8-9. Markets fully price in a quarter-point rate increase, with slight odds of a half-point move.[1] Our Federal Reserve Tracker follows each decision, and two Fed officials signaled more hikes this week.
Chicago Fed President Austan Goolsbee told CNBC on Friday that price pressures have spread beyond oil and tariffs. “Lately we’re not making any progress,” he said of the Fed’s 2% goal.
Policymakers are concerned that price increases tied to the Iran war, higher fuel costs and tariffs are spreading through the wider economy.[1]
What happens next
Stock futures added to gains after the release, while Treasury yields were mixed.[1] The Fed’s December decision is the next major test. More coverage is on our Economics page.
Sources
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