Wholesale prices in the United States increased 0.3% in October 2026, lifting annual producer inflation to 6.5%, according to Bureau of Labor Statistics figures released on Friday.
The 12-month advance in the Producer Price Index marked the fastest pace since November 2022. While the monthly gain was slightly below the 0.4% consensus forecast, core wholesale prices excluding food and energy climbed 0.3%, matching projections.
Rising pipeline costs suggest household budgets will face persistent price pressure. Goods prices increased 0.5% over the month and jumped 10.2% on an annual basis, driven by items outside of food and energy. Early-stage production costs rose faster, as intermediate processed goods climbed 14.6% from October 2025.
Services costs rose 0.2% in October, supported by transportation and warehousing, including a 3.9% increase in freight trucking rates.
Rate Decision Ahead
Financial markets have fully priced in at least a quarter-point interest rate increase when the Federal Open Market Committee meets on December 8-9, with small odds seen for a half-point hike.
Earlier this week, consumer price data showed headline retail inflation rose 0.4% in October, exceeding forecasts. Chicago Federal Reserve President Austan Goolsbee said progress on lowering price pressures has stalled, noting that inflation has remained above 2% for nearly six years.
