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The US producer price index for October was lower than the forecast by experts.
Following last week's consumer price index, the pace of increase in producer prices has decreased, raising expectations that prices may be a bit under control.
Correspondent Kim Jong-won reports from New York.
[ Reporter
] A survey showed that producer prices in the U.S., which represent the wholesale price, the price sold by producers, increased by 8% compared to the previous year.
Not only is this a significant decrease compared to the 8.5% rise in producer prices in September, but it is also below the 8.3% expected by economists.
In particular, compared to last month, it was investigated that producer prices rose 0.2% in one month, which was also lower than the forecast compiled by Wall Street and others.
As a result, producer prices in the United States continued to decline for four months in a row. When producer prices (wholesale prices) fall, consumer prices (retail prices) follow the trend with a lag, so the argument that US inflation is coming down after peaking is strong. is being published.
[Citizen Lizman / CNBC Senior Economic Reporter: It is still a very high figure compared to the expectations of the Federal Reserve System, but it has fallen to 8%.
If you look at this table, the rate of increase has been falling for several months.
We are going in the right direction.]
In response to the news that producer prices have also slowed following the slowdown in consumer price inflation last week, President Biden immediately made a statement saying that there is another good news for the US economy.
President Biden said that it was an indicator that inflation had begun, and said that his economic policy was showing results.
Expectations are also growing that the Federal Reserve can reduce the range of interest rate hikes next month as inflation easing indicators are coming out one after another.
Today (16th), all three major indexes in the New York stock market rose simultaneously.