US Producer Prices Plummet in October, Marking Largest Decline Since April 2020

The producer price index (PPI) in the US dropped by 0.5% in October, marking the largest decline since April 2020. The core PPI, which excludes volatile food, energy prices, and trade services, rose by 0.1% in October. Over the past year, headline PPI is up 1.3%, while core prices are up 2.9%. The decrease in PPI was driven by lower energy and food prices, indicating soft inflation in the pipeline. Stock markets reacted positively to the news, with the DJIA and SPX set to open higher, while the 10-year Treasury yield rose to 4.51%.