Producer Price Inflation Hits 6.5%, the Highest Since 2022: What the Grocery Bill Feels Next

The producer price index for final demand rose 0.3% in October from September and 6.5% from a year earlier, the Bureau of Labor Statistics reported Friday morning. That 12-month number is the fastest since November 2022, and it tells the household budget more than the month-to-month figure does, because the goods those producers sell are the same goods that end up on the grocery shelf and in the garage. This column reads the producer report the way a shopper would: the goods half is up 10.2% from a year ago, the food line at the producer gate rose 1.3% in the month, and the cost of moving all of it is rising again.

Key takeaways Producer prices for final demand rose 6.5% from a year ago in Oc…