Producer prices in the US increased slightly in October, but inflation once again appears to be subdued

Producer prices in the US increased slightly in October, but inflation once again appears to be subdued. The Producer Price Index (PPI) climbed 0.2% in October, compared to a 0.1% decline in the prior month. On an annual basis, PPI climbed 1.5%. Taking out energy and food, wholesale prices rose 0.4% in October, and 1.8% on annual basis. In either case, inflation is clearly a non-issue. The headline number came in slightly above expectations, primarily due to a 0.5% monthly increases in services prices. The services increase is mostly due to gas stations, which showed huge gains in margins as gas prices are falling slower than costs of products. (Consumers are always the last to reap the benefits of lower costs!) (VIEW LINK)