U.S. Producer Prices Rise 0.3% in October as Goods and Services Increase
Key Facts
The U.S. producer price index rose 0.3% in October, according to EL7 data released on November 13, 2026, compared with a forecast of 0.4% and a previous reading of 1.4% on October 15. The index measures changes in the prices producers receive, and data from the U.S. Bureau of Labor Statistics separate goods and services to show the sources of the increase. Goods prices rose more than services during the month, but their components differed. Most of the increase in goods prices was attributed to a category excluding food and energy, while the rise in services was concentrated in truck freight transportation. The figures come as the Associated Press said producer inflation exceeded the Federal Reserve’s annual 2% target.
Prices for final-demand goods rose 0.5% in October, after an increase of 2.5% in September, while prices for final-demand services rose 0.2% in October, according to the Bureau of Labor Statistics. The report attributed more than 60% of the increase in the goods index to prices for goods excluding food and energy, which rose 0.5%. Prices for final-demand goods rose 10.2% in the 12 months ended in October, the largest increase for that period since they rose 10.5% in October 2022. This trend highlights the continued pressure goods prices are putting on the annual index, despite a slower monthly increase in goods compared with September. The measure of final demand excluding food, energy and trade services rose 0.5% in October, the same rate recorded in September.
In services, the Bureau of Labor Statistics report said more than 80% of the increase in the final-demand services index in October was attributable to prices for truck freight transportation. Those prices rose 3.9%, making them the clearest driver of the increase in services during the month. By comparison, prices for final-demand services overall rose 0.2%, showing the gap between the sharp increase in transportation and the broader rise in the services index. Freight’s contribution points to a direct channel through which the cost of transporting goods feeds into producer prices. Alongside this monthly detail, the measure of final demand excluding food, energy and trade services recorded an annual increase of 4.9% through October.
On an annual basis, the Associated Press said wholesale price inflation was 3.1% a year earlier and that Friday’s report indicated prices were still rising at a pace well above the Federal Reserve’s 2% target. The agency said the consumer price index, a more widely known measure, accelerated in October. It added that many Federal Reserve officials had indicated in response that raising the short-term interest rate might be necessary, perhaps more than once, to counter rising prices. This assessment places the producer data in the context of the monetary policy debate, while the index tracking producer prices differs from the one tracking consumer prices. The available evidence did not detail market moves following the release of the producer data.
The Bureau of Labor Statistics report schedules the next release of the producer price index, for November, for December 15, 2026, at 8:30 a.m. Eastern time. The next report will allow a comparison of how goods and services prices have developed after October’s reading, which combined a monthly increase below EL7’s forecast with a strong annual rise in goods. Details on the contributions of goods and transportation categories will help show whether pressures are more broadly distributed or concentrated in specific items. The release date falls at the end of the next period scheduled for this index in the bureau’s calendar. The available data did not include a market forecast for the November reading.