Wholesale prices up 6.5% in a year, most since 2022
U.S. producer prices rose 0.3% in October, a bit under forecasts, but were up 6.5% from a year earlier, the biggest annual gain since November 2022, the Labor Department said Friday. Food and trucking costs led the rise, and markets still expect a December Fed rate hike.
AI-assisted · US Brief desk · Sources listed below
What happened
The Producer Price Index, which tracks what U.S. businesses get paid for goods and services before they reach shoppers, rose 0.3% in October, the Bureau of Labor Statistics said Friday. Economists polled by Reuters expected 0.4%. September's jump was revised up to 1.4% from 1.3%. Compared with a year earlier, wholesale prices were up 6.5%, the largest 12-month rise since November 2022.
Why it matters
Wholesale costs often pass through to store shelves, delivery fees and restaurant menus. The report follows Tuesday's 0.4% October rise in consumer prices, which was also hotter than expected. Futures markets still fully price in at least a quarter-point Fed rate hike at the Dec. 8–9 meeting, CNBC reported, and Reuters said the data support bets on more hikes after that. Higher rates would mean pricier mortgages, car loans and credit card balances.
More context
What drove it: Goods prices rose 0.5%. Food prices climbed 1.3%, the most since February, while energy edged down 0.1% as diesel fell 7.9%. Services rose 0.2%, a fifth straight monthly gain. Three-fourths of that came from transportation and warehousing, and trucking freight alone rose 3.9%. Over 12 months, goods prices are up 10.2%, the most since October 2022.
Beyond oil: A measure that strips out food, energy and trade services rose 0.5% for a second month and is up 4.9% from a year ago. Prices for processed goods that businesses buy as inputs are up 14.6% in a year, the most since July 2022. "If you look at how broad-based the inflation is... in categories that are not driven by oil prices and not driven by tariffs, you're still seeing stalled progress," Chicago Fed President Austan Goolsbee told CNBC.
Market reaction: Stock futures added to gains after the release, and the Dow opened higher Friday. One investment chief told CNBC the slightly softer monthly figure is unlikely to change the Fed's plans because consumer inflation was "already outside their comfort zone."
Timeline (12-month PPI change, BLS): Oct. 2025, 2.8%. Feb. 2026, 3.4%. March, 4.3%. April, 5.7%. July, 4.9%. September, 6.3%. October, 6.5%.
What's still unknown: Whether lower diesel and crude prices in October start to cool freight and food costs in coming months. Whether the Fed hikes by a quarter or half point in December. The November PPI report is due Dec. 15, after the Fed meeting.
Sources across the spectrum This story cites right-leaning and left-leaning outlets. Every source is listed below.
6 listed sources
- U.S. Bureau of Labor Statistics, Producer Price Indexes – October 2026 (USDL 26-1687), Nov. 13, 2026
- CNBC (Jeff Cox), Wholesale prices rose 0.3% in October, putting annual rate at 6.5%, the highest in nearly four years, Nov. 13, 2026
- Reuters via U.S. News & World Report, US Producer Prices Rise Further in October, Nov. 13, 2026
- New York Post (generally seen as right-leaning), Wholesale inflation jumps 6.5% from last year — biggest increase since 2022, Nov. 13, 2026
- ABC News (generally seen as left-leaning), Wholesale prices rise at fastest pace in nearly 4 years, Nov. 13, 2026
- US Brief, Consumer prices rose 0.4% in October, more than expected
References listed by US Brief; a source count is not a verification score.
Editorial sourcing notes
All index figures come from the Bureau of Labor Statistics' October 2026 Producer Price Index release. Forecasts are from a Reuters poll and the Dow Jones consensus cited by CNBC. Rate-hike expectations reflect futures pricing reported by CNBC and can change. Monthly figures are seasonally adjusted; 12-month figures are not. Photos are file images, not from this report.
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