U.S. wholesale prices climbed moderately in October as food costs jumped by the largest amount in five months. The uptick in wholesale prices comes in the same week that government data showed retail prices did not change in October, and consumer inflation has risen just 1.2 percent over the past 12 months. Over the past 12 months, wholesale prices are up just 0.5 percent. Core inflation at the wholesale level, which excludes volatile energy and food, is up just 1.1 percent over the past year. Consumers have a tendency to hold off on big purchases if they see prices falling, and that can turn into a deflationary cycle.

Source: The Standard November 14, 2020 03:56 UTC