Producer Prices Rise Slightly More Than Expected

A little warmer than expected, producer prices rose 0.4 percent in October with the year-on-year rate at 1.1 percent. These are still very tame readings underscored by the ex-energy ex-food core which rose 0.3 percent on the month for yearly inflation at an as-expected 1.6 percent and down from September's 2.0 percent.

Adding a little pressure in the month were trade services, which track costs at retailers and wholesalers and which jumped 0.8 percent in the month. Excluding trade services as well as energy and food, producer prices eked out only a 0.1 percent rise on the month for a yearly rate of 1.5 percent.

This report is mixed and outside of trade services isn't pointing to a heating up of general inflation which at the consumer level has, though steady, been flat under the Federal Reserve's 2 percent target.