U.S. Producer Prices Climb 0.6%, Adding to Inflation Concerns

• Prices paid to U.S. producers accelerated in October, largely due to higher goods costs, fueling concerns about the persistence of inflationary pressures in the economy. 
• The producer price index for final demand increased 0.6% from the prior month and 8.6% from a year earlier, matching forecasts, Labour Department data showed Tuesday. Excluding the volatile food and energy components, the so-called core PPI rose 0.4% and was up 6.8% from a year ago.
• The report underscores how transportation bottlenecks, materials shortages and increasing labour costs have sent prices soaring across the economy in recent months. And with ongoing supply-chain challenges anticipated to linger into 2022, sustained price increases at the producer level presage additional consumer price increases in the coming months.

(Source: Bloomberg)