Key facts
- PPI for final demand rose 0.3% in October, below the 0.4% forecast in a Reuters poll of economists.
- The annual PPI gain of 6.5% was the largest since November 2022.
- Goods prices rose 0.5% on food and basic organic chemicals, while services rose 0.2%.
- Markets priced a 25-basis-point December rate hike with room for half a point, per CME FedWatch.
- Fed Governor Christopher Waller's comments and October data left markets wavering on December policy.
US producer prices rose 0.3% in October, the Bureau of Labor Statistics said on November 13, 2026, while the annual gain accelerated to 6.5%, the largest since November 2022. Economists polled by Reuters had expected a 0.4% monthly increase. The September monthly figure was revised up to 1.4%. Goods prices rose 0.5%, mostly food and basic organic chemicals, while services rose 0.2% for the fifth consecutive month. Year-over-year PPI rose after a 6.3% gain in September. The report follows a stronger-than-expected October consumer price increase and a payroll gain with the unemployment rate falling to 4.1% from 4.2%. Fed Governor Christopher Waller's comments, alongside that data, left markets pricing a 25-basis-point December hike while allowing for half a percentage point. CME's FedWatch tool showed markets expected another increase in January. The Fed left its benchmark in the 3.75%-4.00% range last month.