PPI Shows Unexpected 0.2% Drop in October on Lower Energy, Vehicle Costs
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Wholesale prices came in with an unexpected drop for October, bolstered by a decline in energy and vehicle prices.
According to the Bureau of Labor Statistics, the producer price index fell 0.2 percent in October, versus expectations of a 0.1 percent gain. PPI rose 1.1 percent in October.
Mainly, companies are keeping an eye on Europe, with global demand expected to be kept in check as the debt crisis continues to play out.
The cost to produce passenger cars fell 1.6 percent, while light truck production costs dropped 1.5 percent. Those are the largest declines since July 2009 and October 2010, respectively.
With lower inflation, the Fed is given more leeway to maintain its bond buying program, which aims to spur growth in the economy and lower the unemployment rate.
Amid the data, U.S. markets are largely higher on the session.
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According to the Bureau of Labor Statistics, the producer price index fell 0.2 percent in October, versus expectations of a 0.1 percent gain. PPI rose 1.1 percent in October.
Mainly, companies are keeping an eye on Europe, with global demand expected to be kept in check as the debt crisis continues to play out.
The cost to produce passenger cars fell 1.6 percent, while light truck production costs dropped 1.5 percent. Those are the largest declines since July 2009 and October 2010, respectively.
With lower inflation, the Fed is given more leeway to maintain its bond buying program, which aims to spur growth in the economy and lower the unemployment rate.
Amid the data, U.S. markets are largely higher on the session.
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