By Radarr Africa Business Desk
WASHINGTON, November 14 (Radarr Africa) – United States producer prices rose 0.3% in October, a smaller monthly gain than economists had expected, but the annual increase of 6.5% was the largest since November 2022 and kept pressure on bond markets as traders braced for another interest rate rise next month.
The Bureau of Labor Statistics said on Friday that its producer price index for final demand rose 0.3% on a seasonally adjusted basis, after jumping 1.4% in September and 0.4% in August. Economists polled by Dow Jones had expected a 0.4% gain. Unadjusted, the index was 6.5% higher than in October 2025.
Prices for final demand goods rose 0.5% in October, after surging 2.5% in September. Over 12 months, goods prices are up 10.2%.
Final demand services rose 0.2%, the fifth monthly advance in a row. Transportation and warehousing prices climbed 2.0%, while trade margins fell 0.2%.
Energy provided some relief. Final demand energy prices slipped 0.1% in the month, with diesel fuel down 7.9%. Final demand foods, by contrast, rose 1.3%.
The measure that strips out food, energy and trade services rose 0.5%, the same pace as in September. It is up 4.9% over the past 12 months, the bureau said. Other analysts put the core annual rate slightly higher using a different definition.
The report followed a consumer price release earlier in the week that was hotter than forecast, and it did little to change the market view that the Federal Reserve will keep tightening. Traders are pricing a quarter-point increase at the central bank’s 8 to 9 December meeting as close to certain, with a smaller chance of a half-point rise.
Chris Zaccarelli of Northlight Asset Management said the report was unlikely to change the Fed’s approach and that he expects a quarter-point increase in December.
Chicago Fed president Austan Goolsbee said on Friday the central bank still has work to do on inflation.
Bond yields reflected that outlook. The two-year Treasury yield rose about 35 basis points over the week to around 4.87%, its biggest weekly increase since September 2024. The 10-year yield rose about 29 basis points on the week to roughly 5.15%, according to market data, and sits close to the 5.31% high of the past year. Higher Treasury yields guide mortgage rates and the borrowing costs of governments and companies worldwide.
The dollar firmed as a result. The dollar index rose 0.2% to 103.38, its highest since April 2025, and gained about 1% for the week, its best showing in two months. The euro fell to $1.1022, its weakest against the dollar since April 2025. The yen weakened to about 159.75 per dollar after testing 160, and Japan’s finance minister said the government would respond appropriately to currency volatility.
Gold, which usually struggles when yields and the dollar rise together, was little changed on Friday at about $3,886 an ounce after hitting new 52-week lows earlier in the week. It fell about 4% over the week. Silver was down 1.9% at about $49.12.
Equities were mixed. The S&P 500 fell about 0.4% on Friday, led lower by technology shares, though it still gained more than 2% on the week. Bitcoin dropped below $70,000 for the first time since late August, as rate-hike fears weighed on demand for riskier assets.
