A slowdown in rising producer prices in America increases expectations of lower inflation (Getty)
Producer prices in the United States rose less than expected in October, with service prices falling for the first time in nearly two years, in new evidence that inflation It is starting to ease, which may allow the Federal Reserve (the US central bank) to slow down The rate of interest rate hike.
The report released by the Ministry of Labor showed on Tuesday Decreased cost of goods Excluding food and energy, which reflects improved supply chain conditions and slower demand as a result of higher borrowing costs. This supports the economists’ point of view that there is a slowdown in commodity price inflation, which contributes to curbing inflation.
The report was released on the heels of data last week showing the consumer price index rose less-than-expected in October, pushing the annual increase below 8 percent for the first time in eight months.
The producer price index for final demand rose 0.2% last month. Data for September was revised down to show that the producer price index rose 0.2% instead of 0.4% before revision.
The Federal Reserve raised interest rates on its funds in six consecutive meetings, starting from last March, in order to put an end to the highest inflation the country has witnessed in more than four decades.
There is only one meeting left for the Federal Reserve this year, to announce its decisions on the fourteenth of next month, and expectations indicate that the increase in it will not exceed fifty basis points, following the emergence of a decline in producer prices, and before that consumer prices, during the past month.
(Archyde.com, The New Arab)
