Rising U.S. Producer Prices Highlight Inflation Stall as Fed Considers Rate Decisions

U.S. producer prices increased in October due to higher service costs, indicating stalling inflation efforts. The Federal Reserve may cut interest rates amid varying inflation pressures reflected in core PCE data. Jobless claims fell, hinting at labor market resilience despite Hurricane impacts and the Boeing strike.

October revealed an uptick in U.S. producer prices, driven by increased costs in services like portfolio management and airline fares, pointing towards stagnation in efforts to curb inflation.

The Labor Department's report on rising producer prices came following news of stagnant consumer inflation, altering expectations for the Federal Reserve's upcoming interest rate decisions.

Despite fluctuation in prices, such as declining energy and food costs, economists adjust inflation forecasts, weighing job market resilience against potential douses in interest rate cuts due to recent jobless claim figures and external economic factors.

(With inputs from agencies.)