On Tuesday, US Labour Department data had unveiled that US Produce Prices Index, a critical indicator to future CPI (Consumer Price Index) growth, rose less than anticipated last month, adding to optimism that the US economy might be able to yield a soft landing when it comes to recession frets.
On top of that, producers spending for US services sectors fell for the first time in nearly two years, however, US Fed’s latest remarks on its aggressive monetary policy remained a key drag. Nonetheless, US Labour Department’s Tuesday’s data had unfurled a marginal depreciation in the cost of wholesale goods excluding food and energy, as supply chain issue persists.
Adding to further woes that the US economy might face off a recession as early as by early-2023, demands of raw materials had slowed down sharply, largely galvanized by a higher borrowing cost. Meanwhile, adding that the US economy might have just witnessed a shimmering ray of hope at the end of the tunnel with an impending recession lurking over the horizon, a senior economic advisor at Brean Capital in New York, Conrad DeQuadros said, “This report will add to the narrative that inflation has peaked and, in particular, that pressures from the goods sector may be easing”.
US PPI growth slows in October
According to data from US Labour Department, US Producer Prices Index rose 0.2 per cent last month, while September data was revised lower to 0.2 per cent from an initial estimate of 0.4 per cent.
Nonetheless, over the past twelve months through October, US PPI jumped as much as 8.0 per cent, still anchoring at a worrisome level, while gasoline prices jumped as much as 60 per cent and food prices soared 0.5 per cent amid a simmering supply-crunch.