(Nov 14): US producer prices picked up in October, fuelled in part by gains in portfolio management and other categories that feed into the Federal Reserve’s preferred inflation gauge.

The producer price index (PPI) for final demand increased 0.2% from a month earlier after rising a revised 0.1% in September, Bureau of Labor Statistics data showed on Thursday. Compared with a year ago, the PPI rose 2.4%.

A measure of producer prices excluding volatile food and energy categories climbed 0.3% and 3.1% from a year ago.

The wholesale inflation data follow the more closely watched consumer price index, which showed on Wednesday that underlying inflation remained stubborn for a third month. While price pressures have largely abated this year, a lack of headway more recently suggests Fed policymakers will slow the tempo of interest-rate cuts.

Economists parse the PPI data for categories that feed into the Fed’s preferred inflation measure — the personal consumption expenditures price index. Portfolio management fees, which track the stock market, climbed 3.6%, the most in six months.

Airfares were also higher, increasing by the most since the end of 2022. Healthcare categories were mostly stronger, the report showed.

The PPI report showed services costs increased 0.3%, after a 0.2% gain in the prior month.

Prices of goods, excluding food and energy, were also 0.3% higher in a slight pickup from the prior month.

Tempering the overall gain in PPI were declines in wholesale food and energy prices.

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