* Producer prices up 0.6% in October
* PPI up 8.6% year-on-year
* Core PPI up 0.4%; 6.2% year-on-year profit
WASHINGTON, Nov 9 (Businesshala) – U.S. manufacturer prices rose solid in October, driven by rising costs of gasoline and automotive retailing, suggesting that high inflation may take some time to come amid tight supply chains related to the pandemic. may remain.
The Labor Department said on Tuesday that the producer price index for final demand rose 0.6% last month after climbing 0.5% in September. In the 12 months to October, the PPI rose 8.6% after a similar gain in September.
Economists polled by Businesshala had forecast the PPI to grow 0.6% on a monthly basis and 8.7% year-on-year.
“The uptick in US inflation may not be as rapid as previously thought, especially for businesses due to global supply-chain issues,” said Ryan Sweet, a senior economist at Moody’s Analytics in West Chester, Pennsylvania.
“Increased inflation is turning the heat on the Federal Reserve, but they haven’t shown signs of buckling because they will stomp high inflation to push the labor market back to full employment quickly.”
The over 60% increase in PPI last month was driven by a 1.2% rise in commodity prices, following a 1.3% jump in September. A 6.7% increase in petrol prices led to a one-third increase in commodity prices. Along with diesel, gas and jet fuel, prices of plastic resins increased.
Wholesale food prices fell 0.1% as beef and veal prices fell 10.3%. Prices for light motor trucks fell as the government introduced new model-year passenger cars and light motor trucks into the PPI.
Services rose 0.2% last month after a similar increase in September. The 8.9% jump in margins for automobile and parts retail is attributable to more than 80% growth in services. The cost of transportation and storage services jumped 1.7%.
Retail sales of apparel, footwear, freight truck transport, food and alcohol, hospital outpatient care as well as wholesale prices of machinery, equipment parts and supplies also increased. But portfolio management fees fell.
Excluding volatile food, energy and trade services components, producer prices increased by 0.4%. The so-called core PPI rose 0.1% in September. In the 12 months to October, the core PPI rose 6.2%. This was followed by a 5.9% gain in September. (Reporting by Lucia Muticani, Editing by Louise Heavens and Andrea Ricci)