PPI Final Demand Declined To 1.3% In October As Gasoline PPI Plunges -13.5% YoY

In October, the US Producer Price Index (PPI) for Final Demand saw its sharpest decline since COVID-19 lockdowns, dropping by 0.5% month-over-month. This drop, mainly due to plummeting gasoline prices, led to a year-over-year decrease in PPI Final Demand to 1.3%. The downturn aligns with the negative growth in M2 Money supply. As the economy weakens, there’s growing anticipation that the Federal Reserve might start reducing interest rates in 2024, after halting rate hikes.