From the Desk - Economic Commentary
Scott Goedken, Institutional Strategies Director - 11/12/2026
Producer prices increased 0.3% in October, below expectations for a 0.4% gain and well below September’s revised 1.4% increase. The smaller monthly rise offered some relief, but wholesale inflation remained broad. Prices excluding food, energy and trade services rose 0.5% for the second consecutive month, while headline PPI increased 6.5% from a year ago, its largest annual gain since November 2022.
Goods prices rose 0.5%, including a 1.3% increase in food prices, while services advanced 0.2%. Transportation costs remained a source of pressure. Truck freight prices increased 3.9% and accounted for most of the rise in final-demand services.
The report did little to change the outlook for December. Fed funds futures assign an 89.4% probability to a 25-basis-point rate increase and a 10.6% probability to a 50-basis-point move. Longer-term Treasury yields are higher this morning, while shorter-term yields are little changed. U.S. equity indices are lower this morning.
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