Wholesale prices rose 0.3% in October, easing from the previous month, though inflation remains elevated and the Federal Reserve is likely to raise rates in December.
Wall Street forecasters had expected a monthly rise of 0.4%.
However, the Bureau of Labor Statistics said the Producer Price Index, or PPI, rose 6.5% for the year ended in October, the largest 12-month rise since it rose 7.4% in November 2022.
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The PPI measures what domestic producers receive for their products and is considered a leading indicator of inflation.
Earlier this week, the government said the Consumer Price Index — what people pay at the checkout counter for goods and services — rose 0.4% for October, a slightly higher-than-expected level.
The data will help the Federal Reserve decide whether to raise interest rates at its December meeting.
Central bankers raised rates in September but left them unchanged at their October meeting.
Forecasters say a December rate hike is probable. The labor market and other parts of the economy remain strong, letting the Fed focus on tools to tame inflation.
Inflation surged during the Biden administration and remains above the Fed’s 2% target rate under President Trump, whose Republican Party suffered a rout in midterm elections that focused on the high cost of living.
Since then, gas prices have fallen below $4 per gallon.
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