The Producer Price Index for final demand rose 0.3 percent in October, the Bureau of Labor Statistics reported on Friday, Nov. 13. Prices rose 6.5 percent over the 12 months ended in October. That is the largest annual increase since November 2022, according to BLS, CNBC and Reuters.

Against expectations

Economists surveyed by Dow Jones expected 0.4 percent, CNBC reported. A Reuters poll also expected 0.4 percent. The monthly figure came in lower.

The annual figure did too. Economists had expected 6.6 percent, ABC News reported.

September was revised. The monthly increase is now 1.4 percent, up from 1.3 percent, Reuters reported. The annual rate in September was 6.3 percent.

Core measures

Excluding food and energy, producer prices rose 0.3 percent, in line with forecasts, CNBC reported. The 12-month core rate was 5.0 percent, the highest since January 2023, according to Kiplinger and Haver Analytics.

A narrower measure excludes food, energy and trade services. It rose 0.5 percent, CNBC reported. Its annual rate was 4.9 percent, according to Haver.

Goods and services

Goods prices rose 0.5 percent. More than 60 percent of that increase came from goods excluding food and energy, CNBC reported. Food rose 1.3 percent. Fresh and dry vegetables rose 26.7 percent. Energy fell 0.1 percent, according to BLS.

Over 12 months, goods prices rose 10.2 percent. That is the largest increase since October 2022, CNBC reported.

Services rose 0.2 percent. It was the fifth straight monthly increase, according to Reuters. Most of it was linked to transportation and warehousing, CNBC reported. Truck freight rose 3.9 percent. Trade services fell 0.2 percent, according to BLS.

Earlier in the pipeline

Prices for intermediate processed goods rose 14.6 percent from October 2025. That is the largest increase since July 2022, CNBC reported. Intermediate services rose 6.9 percent, according to CNBC.

The Fed

Goolsbee, president of the Chicago Fed, spoke to CNBC on Friday. "We've had some signs of trouble now for several months in a row," he said.

He described the breadth of the increase. "If you look at how broad-based the inflation is, it's not just that we're above the target and have been for some time," Goolsbee said. "It's that in categories that are not driven by oil prices and not driven by tariffs, you're still seeing stalled progress and in some cases going the wrong way."

On Oct. 28, the Federal Open Market Committee held its target range at 3-3/4 to 4 percent, according to the Fed's statement. The vote was 10-2. Lisa D. Cook and Beth M. Hammack dissented. Both preferred a 1/4 point increase.

The next meeting is Dec. 8-9. The CME FedWatch tool showed about a 90 percent probability of a quarter-point increase in December, up from 85 percent a day earlier, Kiplinger reported. CNBC said markets fully price at least a quarter-point increase, with slight odds of a half point.

Reuters wrote that the report supports expectations the Fed could keep raising rates after a December increase that is widely expected.

"The good news is that producer price inflation cooled from September... The bad news is that it may not have cooled enough to give markets the rate relief they want," Chris Osmond of Fifth Third Wealth Advisors told Kiplinger.

Next release

BLS publishes the November PPI on Dec. 15 at 8:30 a.m. Eastern. That is six days after the Fed's December decision.