Wholesale Inflation Drops Sharply in October, Supporting View that High Inflation May be Easing
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Inflation at the wholesale level posted a surprise 0.5% decline in October, the biggest drop in 3 years.
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Core wholesale inflation, excluding food and energy, was unchanged in October after rising 0.3% in September.
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On an annual basis, wholesale prices rose just 1.3% in October, down sharply from 2.2% in September.
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The declines suggest high inflation is beginning to ease its grip on the economy.
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The data supports the view that the Fed may be done raising interest rates given the notable decline in inflation.