Producer Prices Continue to Expand in October

Producer prices rose at a slightly higher rate in October, according to data released by the Labor Department. Supply-chain bottlenecks and shortages continue to drive manufacturing and shipping costs, keeping the historic climb for the index and subcategories for final demand moving up.

Since falling in early 2020, the composite Producer Price Index (PPI) of all commodities from the Bureau of Labor Statistics (BLS) has gained ground month-on-month for 18 consecutive months, fully recovering from the pandemic-driven collapse, and overtaking pre-pandemic levels by nearly 40 points. October’s index registered a 0.6% gain against the prior month, seasonally adjusted. Additionally, the index is up 8.6% for the 12 months ended October 2021, matching the largest advance since 12-month data were first calculated in November 2010.

David Schollaert

David Schollaert is a senior analyst for Steel Market Update. David joined SMU after more than a decade in the metals and mining industry in a myriad of different roles. Much of his early experience and expertise were within the coverage and analysis of steel-making raw materials and served previously as senior editor of the CRU Prices Service. Most recently, however, before his return to market analysis, David held roles as a metals buyer and an operations manager for raw material suppliers. Based in CRU’s Pittsburgh office, David can be reached at david@steelmarketupdate.com or 724-720-1008.