U.S. producer price index increased sharply in October which was mainly attributed to rising prices of gasoline and retail motor vehicle prices. This suggests high inflation is just not transitory which central banks echoed earlier.
The producer price index for final demand rose 0.6% in October compared to 0.5% in September, according to the Labor Department. However, compared to a year earlier PPI remained at 8.6% similar to September.
According to forecasts, economists expected PPI to grow by 0.6% compared to September and 8.7% compared to a year earlier.