U.S. wholesale prices remained high in October and showed signs of accelerating again, the government reported on Nov. 9, as the world's largest economy battles a wave of inflation.
The producer price index (PPI) rose 0.6%, seasonally adjusted, in October, according to the Labor Department, which was in line with analyst expectations and slightly higher than September's increase.
Compared to the same month in 2020, PPI increased 8.6%, the same rate as the prior month, the report said.
The United States has seen prices increase throughout this year as business normalized with the help of widespread Covid-19 vaccines.
But rising inflation has been fueled by shortages of workers and components, amid a global snarl in supply chains.
Goods made up the majority of the wholesale price increases, particularly energy, which rose 4.8% last month. Among services, transportation and warehousing prices increased 1.7%.
"With supply dynamics showing few signs of abating before year-end, we look for PPI inflation to peak later in (the fourth quarter) before price pressures gradually moderate across 2022," Mahir Rasheed of Oxford Economics said.
The PPI data signaled building price pressures in the pipeline that could spill over to consumers.
With volatile food, energy and trade costs excluded, PPI rose 0.4% last month, faster than the 0.1% increase in September, and it was up 6.2% year-over-year in October after a 5.9% gain the month prior.
The Labor Department will release consumer price data on Wednesday, which economists also expect to accelerate.
Higher inflation raises the possibility the Federal Reserve will have to raise interest rates sharply to contain the price increases, but Fed officials say inflation should retreat once the supply and labor issues are resolved.
Copyright 2021, Agence France-Presse
