Wholesale Prices in US Drop 0.5% in October, Biggest Monthly Decline Since April 2020

Wholesale prices in the US fell 0.5% in October, marking the biggest monthly drop since April 2020. This exceeded analysts' expectations of a 0.1% increase. On a yearly basis, wholesale inflation as measured by the Producer Price Index was up 1.3% in October, lower than the 2.2% increase in September. The decline was driven largely by a 15.3% drop in gasoline prices at the wholesale level. Excluding energy, wholesale prices were unchanged. Transportation and warehousing costs rose by 1.5%, trade services fell by 0.7%, and airline passenger services prices surged by 3.1%.