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PPI inflation report October 2026:
CNBC • • general
Key Points:
- Wholesale prices in October rose 0.3%, slightly below the expected 0.4%, with core producer price index (PPI) also increasing 0.3%, meeting expectations, indicating persistent inflation pressures.
- On an annual basis, headline PPI accelerated to 6.5%, the highest since November 2022, suggesting inflation remains above the Federal Reserve's 2% target.
- The Federal Reserve is still expected to raise interest rates at its December 8-9 meeting, with markets pricing in a quarter-point hike and some possibility of a half-point increase.
- Inflation concerns are growing due to factors like the Iran war, higher fuel prices, and tariffs, with broad-based inflation evident beyond food, energy, and trade services categories.
- Chicago Fed President Austan Goolsbee noted inflation is more persistent than anticipated, with some sectors showing stalled or worsening progress despite initial hopes for improvement.
