The Bureau of Labor Statistics October Producer Price Index (PPI) brought good news to an inflation-weary world. Maybe, just maybe, the report suggested, we will soon have roaring inflation behind us. And yes, this may mean the Fed can reduce pressure on the brake pedal as the economy slows. At least that is the growing opinion of some highly focused Fed watchers. Perhaps more importantly, maybe we will escape a hard-hitting recession in 2023.
Even though higher-priced energy was still hitting consumers hard, the all-item October PPI rose 8.0 percent, year-over-year, which is better than September’s 8.4 percent and August’s 8.7 percent and way better than July’s 9.7 percent. And within the all-item index, the services component fell for the first time in nearly two years.
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