Retail Sales Drop and Producer Prices Fall as Inflation Shows Signs of Easing
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Retail sales fell 0.1% in October, the first decline in 7 months, pointing to slowing consumer demand.
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Producer prices dropped 0.5% in October, the biggest decline since April 2020, largely due to cheaper gasoline.
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The data supports the view that the Federal Reserve is done hiking interest rates for now.
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There are signs of moderating inflation, with core PPI up just 1.3% year-over-year in October.
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While consumer spending is cooling, there are no signs yet of the economy sliding into recession.