Excluding the volatile food and energy categories, core producer prices were unchanged in October from September, the lowest reading in nearly two years. Core prices increased 6.7% last month from a year ago, down from a 7.1% annual rate in September.
The cost of services, such as hotels, air travel, and health care, slipped 0.1% in October from September, the first drop since November 2020.
The report follows last week's better-known consumer price index, which showed that year-over-year inflation cooled to a slower-than-expected 7.7% in October, down from 8.2% in September. And excluding volatile food and energy costs, that report also said that core prices rose just 0.3% in October from the previous month, half the increase of the previous two months.
Those consumer inflation figures sent stock markets soaring because they suggested that the devastating price spikes of the past 18 months might finally be moderating. The cost of used cars, clothing, and furniture fell, a sign that goods prices are reversing their big price leaps of last year, when supply chain blockages sent inflation soaring.
In recent months, delays at major ports have been cleared, the price of ocean shipping has tumbled and more stores are building larger stockpiles. All those trends suggest that goods prices could continue to decline.