Inflation, as measured by the producer price index, rose six tenths of a percentage point to 2.4% for the year ending in October, the Bureau of Labor Statistics reported Thursday, a troubling sign that inflation pressures remain strong. Economists had ...

U.S. producer prices picked up in October, lifted by higher costs for services like portfolio management and airline fares, another sign that progress towards lower inflation was stalling.

The Producer Price Index, or PPI, increased 0.2% M/M in October, matching the consensus and picking up from +0.1% in September, which was revised from 0.0%. On a Y/Y basis, headline PPI increased 2.4% vs. +2.3% consensus and +1.9% prior (revised from +1.8%).

In October, most of the rise in final demand prices can be traced to a 0.3% advance in the index for final demand services. Prices for final demand goods inched up 0.1%.

This steady PPI figure is encouraging for the US dollar, as the alignment with expectations suggests a stable inflation rate. Such consistency supports a balanced economic outlook, which often strengthens the dollar by reinforcing confidence in the currency’s stability.

U.S. producer prices picked up in October, lifted by higher costs for services like portfolio management and hospital outpatient care, further evidence that progress toward lower inflation was stalling.

The producer price index was expected to increase 0.2% in October, according to the Dow Jones consensus forecast.