October Sees Largest Monthly Drop in Wholesale Prices Since April 2020

Wholesale prices in the US fell by 0.5% in October, marking the largest monthly drop since April 2020 and suggesting that the worst of the inflation surge may have passed. The decline was driven by a 1.4% drop in goods prices, primarily due to a 15.3% decrease in gasoline prices. On a yearly basis, the producer price index (PPI) increased by 1.3%, down from 2.2% in September. The report comes after the consumer price index (CPI) remained unchanged in October, indicating that the Federal Reserve may not raise interest rates and could potentially cut them in the first half of 2024. However, retail sales declined by 0.1% in October, with sales at service stations down 0.3%.